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: Monday, March 8th, 7:45PM

Mortgages

Mortgage Rates Daily Commentary
Monday 8 March 2021  Add your comment
Time to lock in long term rates?; Kainga Ora rate cuts

Record low mortgage rates will remain in place for much of this year, but some borrowers could be better off locking in long term loans, say ASB economists: [READ ON]

Kainga Ora rates fall this morning. One year rates are available at 2.67%, while two years are available at 2.97%.

rss
Latest Headlines

Look to lock in rates

Finding a fixed rate loan at the right price can be crucial to whether you can afford your dream home or investment property. But if you have to delay completion of the purchase you face the possibility that you will lose the cheap rate.

Tuesday, August 22nd 2006, 6:18AM

by Maria Scott

This may not be such a problem when fixed rates are falling, as they have been recently, but might be a deal-breaker if they are rising. Lenders have different approaches to holding rates beyond a certain period.

It may pay to check these out when assessing the deals on offer. ANZ will now hold a fixed rate for up to 60 days, the same as at sister lender National Bank. Rates will not be held beyond 60 days.

Charges of 0.2% for a “lock-in” beyond a certain point are not unusual and HSBC asks for this to hold a rate for more than 14 days.

Mortgage broker Charlie Reid of Mortgage Link Central Otago says that, in general lenders have been reducing their lock-in periods. Where once many would hold a rate for 40 days without charge those time limits have come back to 28 days or less.

“From the banks’ point of view it is a form of fee income.” However the volatility of interest rates is also a factor, encouraging lenders to reduce their exposure by limiting free lock-in periods.

Borrowers need to weigh up the costs of an extended lock-in against the costs they might incur on their mortgage if they have to pay a higher rate.

On a $100,000 loan, a 0.2% charge would be $200. If interest goes up by 0.2% and the rate is fixed for three years the extra cost of a rate rise would be $600. “It may be worth spending $200 to save $600,” says Reid.

« A less aggressive approach to lendingPushing mortgages to the limit »

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 2.29 2.59 2.65
ANZ 4.44 2.89 3.25 3.39
ANZ Special - 2.29 2.69 2.79
ASB Bank 4.45 2.29 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.29 2.59 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 2.89 3.19 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
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 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 1.99 - -
Lender Flt 1yr 2yr 3yr
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 ▼2.67 ▼2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 2.79 2.79 3.15
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.29 2.29 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 2.29 2.59 2.79
The Co-operative Bank - Standard 4.40 2.79 3.09 3.29
TSB Bank 5.34 3.09 3.29 3.45
TSB Special 4.54 2.29 2.49 2.65
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.29 2.69 2.79
Median 4.55 2.73 2.99 2.80

Last updated: 8 March 2021 8:01am

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