tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, June 2nd, 9:44AM

Mortgages

Mortgage Rates Daily Commentary
Tuesday 2 June 2020  Add your comment
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]

rss
Latest Headlines

Unusual things happening with home loan rates

It’s been another week of home loan rate increases, with most of the banks increasing their rates for fixed terms of two years or more.

Thursday, May 18th 2006, 6:39AM
We are now getting back to the levels rates were at at the beginning of the year and it looks as though there is still more upside to go.

The market, which previously had been pricing in several OCR rate cuts this year, now has only one 25 basis point cut priced in.

This shows that it has taken the Reserve Bank governor’s comments at face value.

Bollard has been telling the market the central bank won’t cut interest rates until headline inflation is heading down. While the horizon for rate cuts has been pushed out there is a view that the economy could be in for an extended period of weakness and when eventual rate cuts come they would be sharper than usual.

On the competitive front the one observation worth making is that it appears BNZ is holding out on increasing its rates by the same level as other banks. This means the gap between the two is widening.

This is likely to be a tactical ploy rather than a long-term trend.

However the BNZ itself acknowledges that competition in the home loan market is particularly intense at the moment with well below average margins.

It says there is a risk that fixed borrowing costs will be increasing over the next few weeks so lenders can improve their margins.

If you are looking to take out a one-year rate with the hope of refinancing at lower rates next year then the range is from Southern Cross’s 7.85% through to GEM’s 8.80%. While there are a couple of smaller lenders with the lowest rates, the first group after that is offering 8.10% and the banks are around the 8.25% mark.

The two-year market is most interesting with BNZ being the lowest at 7.60%, and the other banks in the 7.90% to 8.00% area. The difference between BNZ and the others is significant and it is also worth noting that generally the banks are clustered towards the low end of the range with fixed rates, but in this market they are nearer the high end.

In the three-year fixed market things are a little different as well. Kiwibank and Mortgage Finance are the lowest with 7.45% rates, and the banks, rather than being clustered are in a range from 7.75% to 7.90%, with BNZ not far outside the range at 7.70%

« BNZ reckons it's the winnerBrokers' volume drops, but recovering »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
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

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com