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Mortgages

Mortgage Rates Daily Commentary
Wednesday 11 December 2024  Add your comment
Meaningful difference seen as coming from Kiwibank’s capital raise; Profit for specialist lenders falls again

Starting with institutional investment and an eventual IPO is an excellent start for turning Kiwibank into a meaningful disruptor, David Cunningham Squirrel Mortgages chief executive says. [READ ON]

For the second year in a row profit for non-bank lenders has fallen. [Check out what KPMG says]

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Rate cut may be further out

Longer-term fixed rate home loans continue to fall, even though Reserve Bank governor Alan Bollard tried, last week, to dampen expectations that a rate cut is imminent.

Thursday, March 13th 2003, 12:40AM

by Jenny Ruth

The Real Estate Institute’s latest survey shows, most lending institutions cut their one to five year fixed rates in the past month, some even after Bollard’s March 6 Monetary Policy Statement.

ASB Bank, for example, cut its four-year rate on Saturday from 7.10% to 6.95% and its five-year rate from 7.15% to 6.95%. On Tuesday, National Bank made identical cuts to its four and five-year rates.

And wholesale interest rate markets are still banking on the Official Cash Rate (OCR) falling from 5.75% to 5.5% in June and to 5.25% by September.

Westpac economist Nick Tuffley says Bollard didn’t want to destroy rate cut expectations so much, but to postpone them.

The central bank "is inching towards a rate cut but it still hasn’t reached the threshold yet – if anything, there was a little bit of over-anticipation leading into the statement," Tuffley says.

Ulf Schoefisch, chief economist at Deutsche Bank, agrees Bollard wanted to dampen rather than extinguish cut expectations.

"The bank has just pushed it a little more into the future."

Indeed, some people are beginning to argue that June is too early for the first cut and that September is more likely, Schoefisch says.

Both economists also point out that changes in the OCR have most influence on shorter-term rates and less and less the longer the term.

The longer-term rates are most influenced by global interest rate markets which are dominated by the US.

Currently, fears of what war will bring and a spate of poor economic figures coming out of the US have US 10-year bond rates at 44-year lows and there’s even talk that the US Federal Reserve further cut its cash rate (which at 1.25% is already at an historical low.

« Fixed rates keeping fallingKiwibank's home loan business growing »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 12 December 2024 9:22am

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