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Mortgages

Mortgage Rates Daily Commentary
Friday 5 March 2021  Add your comment
New lending rules likely

There is a "high" probability of extra rules to curb house price inflation, such as DTIs and interest-only lending restrictions, according to economist Tony Alexander: [READ ON]

On the rate front, The Co-operative's four and five year home loans have edged up. Take a look at the latest rates here.

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Interest rates keep on rising

Weekly Home Loan Report: Most lenders have now re-priced their mortgage ranges in response to the latest increases to the cost of their funding but some are fine-tuning and others are still catching up.

Thursday, April 12th 2007, 7:37AM
ASB, BNZ, Kiwibank and Bank Direct are among lenders that have raised some or all of rates over the past week.

It is not surprising that lenders and commentators believe that the latest increases to mortgage rates will have an impact on borrowers’ budgets and confidence.

Brendan O’Donovan, chief economist at Westpac says that if mortgage rates were to hold at their current level, household debt servicing on the current stock of mortgage debt would be $750 million higher in two years’ time, as fixed rate borrowers roll onto the higher interest rates.

Annual mortgage interest payments are currently around $10.4 billion.

Wholesale rates, the main factor in determining the cost of fixed rate loans have fallen back slightly from the levels they reached towards the end of March. But the increases, as well as a desire by mortgage lenders to recover lending margins, were sharp enough to drive rates significantly higher.

Signals from industry, the domestic and international economies point to further increases in official rates. Borrowers could see floating rate loans top 10% in coming months.

Two and three-year fixed rates are now at their highest levels since mid-2000.

But with the cost of five-year fixed mortgages also significantly above five year averages – all the major banks are charging 8.6% –longer term fixing has become less attractive than it was earlier in the year. Borrowers who want to avoid paying 10%-plus on a floating rate and who believe that the higher rates rise the harder -and faster - they will fall, may feel more comfortable with a two year or three year rate than a few weeks ago. Others can hedge their bets by splitting debt across short and long terms. If you have spare cash, the return on repaying debt becomes more attractive by the day.

Check and compare today's rates Here.

To compare historical rates use our handy graphing tool Here.
« ASB loses home loan market shareNew mortgage joint venture created »

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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 2.79 3.04 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 2.79 2.99 2.80

Last updated: 4 March 2021 8:47am

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