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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%.

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Rates fall, but its not the turning point

In the past week a number of home loan lenders have been dropping some of their fixed term rates however this shouldn't be seen as an ongoing trend.

Thursday, July 5th 2007, 7:05AM
Right now borrowers are suffering from three recent increases in the Official Cash Rate, which now sits at 8%, plus increasing wholesale rates, which are up between 80-100 basis points since the start of the year.

As noted before floating rates are now beyond the 10% mark, and it is the first time they have been in this territory since 1998.

With this sort of background any falls, no matter how small, will be most welcome to borrowers. However the news is not too good. Economists think the balance of risks is on the higher side and more OCR increases are likely this year. Or put another OCR falls are most unlikely.

With this in mind the best strategy is to go for fixed rates, rather than floating ones, and to pick a term which is going to get a borrower through the last of this upward rate cycle.

Also favouring this strategy is the fact that fixed rates are still considerably lower than floating.

In the past week the main changes seen to on the Good Returns mortgage rate table are some falls from mainstream banks - there has been next to no activity from non-bank lenders.

This action has seen most big banks drop their three year fixed rates by 15 basis points and four year rates by 5 points to 9%.

The trend for lower rates the longer one goes out the yield curve means that five year fixed rates are lower than something with a shorter term.

Not that long ago fixing for five years had some merit as it was around its historical levels, however now it doesn't look particularly attractive at nearly 9%.

The prevailing view is that rates won't fall significantly until sometime next year. Fixing for around two years appears to be the preferred strategy there are reasonable odds you will get a much better rate in 2009.

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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 ▼2.67 ▼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

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