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Mortgages

Mortgage Rates Daily Commentary
Friday 3 July 2020  Add your comment
TSB makes big rate cuts; Bank profits drop 20%

This morning TSB has made some significant cuts to its home loan lineup. Its 18 month special falls by 30 basis points, and its six-month home loan drops by 40 basis points. See the latest rates here.

With record-low rates and Covid-19 to contend with, bank profits are taking a big hit this year. KPMG's latest report shows profits fell by 20% in the first quarter: [READ ON]

 

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Pero sees growth in lo-doc market

Mike Pero Mortgages says its Christchurch base offers a good starting point to show its aspirations in the already fast growing lo documentation home loan business.

Thursday, January 19th 2006, 12:30AM

Christchurch franchise owner Nick Rushton says there has been substantial growth in lo-doc over the last 24 months with plenty of potential for that to continue.

“Our lo-doc business has tripled in the last two years. Although it’s still quite a small part of our business, it is growing steadily,” Rushton says.

Chief executive Jeff Staniland, is a champion of lo-doc as a way forward for tens of thousands of self-employed and independent business owners in a complex loans market.

He says arranging a home loan has historically been a difficult and often unsuccessful process for these people.

“Self-employed and business-people want and should be able to access the equity in their homes – particularly after the gains of the past few years – either for an investment property, to renovate, or perhaps to invest back into their businesses."

In Australia lo-doc loans now make up around 15% of the mortgage market, and because of their complex and variable nature are mostly placed through independent mortgage brokers.

“The good news is self-employed and business-people do not generally have to pay a premium for a lo-doc home-loan, as they would if they used old-fashioned sources of alternative finance such as lawyer’s trust funds,” he says.

Staniland says lo-doc loans now have terms and conditions, including deposit requirements and interest rates, comparable to mortgages offered to so-called traditional customers.

Although these loans are called lo-doc, there is still paperwork.

Generally lenders require three months of banks statements and a statement of position. Some lenders may call an applicant’s accountant to verify what is in the statements.

« Online underwriting rolled outSuperbank says business as usual »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 3.85
ANZ Special - 2.65 2.75 3.35
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 ▼3.19 ▼3.49
SBS Bank Special - 2.79 ▼2.69 ▼2.99
The Co-operative Bank - Owner Occ 4.40 2.79 2.79 3.39
The Co-operative Bank - Standard 4.40 3.29 3.29 3.89
TSB Bank 5.34 3.59 3.49 3.79
TSB Special 4.54 ▼2.65 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.65 2.69 2.79
Median 4.55 3.22 3.22 3.44

Last updated: 3 July 2020 8:15am

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