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Mortgage Rates Daily Commentary
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Lending policies changing rapidly; TSB price match

Bank lending policies are changing at their fastest rate since the GFC, with huge variations between major lenders, according to one Auckland adviser: [READ ON]

No new rate changes today, but in case you missed it last week, TSB has vowed to match any home loan rate from the big four banks: [READ ON]

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Market mixed on future direction of house prices

Although there’s still a strong expectation that house prices will continue to rise, fewer people think now is a good time to buy a house.

Monday, October 7th 2002, 6:35AM

by Jenny Ruth

Although there’s still a strong expectation that house prices will continue to rise, fewer people think now is a good time to buy a house, according to ASB Bank’s latest housing confidence survey.

It’s a bit of a dichotomy. People’s expectations of house prices are as high as we’ve ever seen them," says the bank’s chief economist, Anthony Byett.

The survey found 45% of respondents believe house prices will increase, down from 54% three months ago. But only 24% believe it’s a good time to buy, down from 35% in the June quarter.

Byett says the key to the connundrum may be interest rate expectations. "Whether or not people think it’s a good time to buy pretty much goes up and down with interest rates going up and down," he says.

The survey found the majority are still expecting interest rates increases, 53%, although that’s down from 71% in the June quarter. Fixed-rate home loans have actually been falling in recent weeks.

The uncertain global economic outlook and heightened tensions in the Middle East may also be making people hesitant, Byett says.

The economic situation and all this sabre-rattling and the possibility of oil prices going up is spooking people," he says.

Nevertheless, conditions in the housing market itself seem positive. As well as interest rates coming down, listings of houses for sale are at low levels compared to demand and houses are taking less and less time to sell, he says.

Net migration remains strongly positive and building activity is strong, but supply is still limited.

The latest figures showed permanent arrivals exceeded departures by 3,100 in August and in the year ended August there was a net inflow of 36,200 people compared with a net outflow of 4,400 in the previous year. Excluding apartments, housing consents in August fell 3.1%, but that was the first decline since February.

ASB’s survey shows the Auckland market is particularly buoyant with 53% of Aucklanders expecting house price increases.

Byett concludes that if the global concerns dissipate, New Zealand could be in for another surge in housing activity. "The situation is ripe for a busy summer in the housing market.

He notes the survey suggests the "rotting homes" problems don’t appear to be affecting housing confidence generally, although certain newer houses will undoubtedly be impacted.

« New Reserve Bank governor leaves rates unchangedBoard game for property investors »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.29 3.45 3.85
ANZ Special - 2.79 2.95 3.35
ASB Bank 4.45 3.35 3.19 3.85
ASB Bank Special - 2.85 2.69 3.35
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 2.79 ▼2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.39 ▼3.29 ▼3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 2.80 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.80 2.89 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 4.40 2.95 2.95 3.69
Kainga Ora 4.43 ▼3.29 ▼3.39 ▼3.85
Kiwibank 4.40 3.74 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 2.65 2.79 3.25
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 3.75 3.99 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 3.49 3.45 3.39 3.69
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 2.99 3.05 3.69
The Co-operative Bank - Owner Occ 4.40 ▼2.79 ▼2.95 ▼3.39
The Co-operative Bank - Standard 4.40 ▼3.29 ▼3.45 ▼3.89
TSB Bank 5.34 3.59 ▼3.59 4.19
TSB Special 4.54 2.79 ▼2.79 3.39
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.79 ▼2.69 ▼2.79
Median 4.55 3.32 3.39 3.69

Last updated: 28 May 2020 10:38am

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