Home loan market changes

A raft of changes in home loan rates in the past fortnight have changed the shape of the competitive market and the yield curve.

Saturday, May 24th 2008, 5:14PM

Good Returns has started compiling some series of graphs showing how the various groups are positioned against each other.

The three groups we have are:

Big banks: ANZ, ASB, BNZ, National and Westpac
Second tier banks: Kiwibank, Bank Direct, Kiwbank and HSBC
Non-bank lenders: Cairns Lockie, Sovereign, Pioneer, Wizard and PSIS.

The graph below shows the median rates for each of these groups over standard terms. The key points are that big bank floating rates are significantly higher than the other two groups, while non-bank lenders struggle to compete at the long end of the curve with five year rates.

Recent economic news and competitive activity have "bent" the yield curve and put one and two year rates below longer term rates. Also it shows that the big banks have become very competitive in this space having the lowest median one year rates, while it sits between the other two groups for all the other fixed rate terms.

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Lender

Flt

1yr

2yr

3yr

AIA - Back My Build

3.34

AIA - Go Home Loans

5.89

▲4.59

▲4.95

▲5.19

ANZ

5.79

5.09

5.49

5.79

ANZ Blueprint to Build

7.39

ANZ Good Energy

1.00

ANZ Special

4.49

4.69

5.19

ASB Bank

5.79

▲4.59

▲4.95

▲5.19

ASB Better Homes Top Up

1.00

Avanti Finance - Near Prime

6.35

Avanti Finance - Specialised

7.55

Basecorp Finance

6.35

Lender

Flt

1yr

2yr

3yr

BNZ - Mortgage One

5.94

BNZ - Rapid Repay

5.94

BNZ - Std

5.84

4.49

4.69

5.09

BNZ - TotalMoney

5.94

CFML 321 Loans

3.95

CFML Home Loans

6.05

CFML Prime Loans

6.25

CFML Standard Loans

6.95

China Construction Bank

6.44

4.85

4.95

China Construction Bank Special

6.44

5.85

5.95

Co-operative Bank - First Home Special

4.39

Lender

Flt

1yr

2yr

3yr

Co-operative Bank - Owner Occ

4.99

4.49

▲4.89

▲5.19

Co-operative Bank - Standard

4.99

▲5.39

▲5.69

Credit Union Auckland

7.70

First Credit Union Special

4.79

4.95

First Credit Union Standard

6.49

5.39

5.55

Heartland Bank - Online

5.30

5.89

Heartland Bank - Reverse Mortgage

7.99

Heretaunga Building Society

7.45

5.90

5.80

ICBC

5.39

4.25

4.59

4.79

Kainga Ora

5.69

4.49

4.79

Kainga Ora - First Home Buyer Special

Lender

Flt

1yr

2yr

3yr

5.65

5.39

▲5.79

▲6.05

Kiwibank - Offset

5.65

Kiwibank Special

6.15

4.49

▲4.89

▲5.25

Liberty

6.65

6.55

6.22

6.20

Nelson Building Society

▲6.99

4.59

▼4.67

Pepper Money Near Prime

6.55

Pepper Money Prime

5.99

Pepper Money Specialist

8.00

SBS Bank

5.84

5.09

▲5.49

▲5.75

SBS Bank Special

4.49

▲4.89

▲5.15

SBS Construction lending for FHB

3.74

Lender

Flt

1yr

2yr

3yr

SBS FirstHome Combo

3.29

3.99

SBS FirstHome Combo

SBS Unwind reverse equity

7.99

TSB Bank

6.59

5.19

▲5.69

▲5.95

TSB Special

5.79

▼4.39

▲4.89

▲5.15

Unity First Home Buyer special

3.99

Unity Special

5.79

4.49

4.69

Unity Standard

5.79

5.29

5.49

Wairarapa Building Society

6.15

4.59

4.79

Westpac

5.89

5.09

5.49

5.75

Westpac Choices Everyday

5.99

Lender

Flt

1yr

2yr

3yr

Westpac Offset

5.89

Westpac Special

4.49

4.89

5.15

Median

5.94

4.59

4.95

5.19

NZ's Financial Adviser News Centre

Mortgages

Mortgage Rates Daily Commentary

ASB grows home loan book; Two year rates back in vogue

Home loan market changes

A raft of changes in home loan rates in the past fortnight have changed the shape of the competitive market and the yield curve.

Saturday, May 24th 2008, 5:14PM

Commenting is closed

AIA - Back My Build
AIA - Go Home Loans
ANZ
ANZ Blueprint to Build
ANZ Good Energy
ANZ Special
ASB Bank
ASB Better Homes Top Up
Avanti Finance - Near Prime
Avanti Finance - Specialised
Basecorp Finance
BNZ - Mortgage One
BNZ - Rapid Repay
BNZ - Std
BNZ - TotalMoney
CFML 321 Loans
CFML Home Loans
CFML Prime Loans
CFML Standard Loans
China Construction Bank
China Construction Bank Special
Co-operative Bank - First Home Special
Co-operative Bank - Owner Occ
Co-operative Bank - Standard
Credit Union Auckland
First Credit Union Special
First Credit Union Standard
HBS
Heartland Bank - Online
Heartland Bank - Reverse Mortgage
Heretaunga Building Society
ICBC
Kainga Ora
Kainga Ora - First Home Buyer Special
Kiwibank
Kiwibank - Capped Variable
Kiwibank - LVR >80%
Kiwibank - Offset
Kiwibank - Special
Kiwibank Special
Kiwibank Special
Liberty
Nelson Building Society
Pepper Money Near Prime
Pepper Money Prime
Pepper Money Specialist
SBS
SBS Bank
SBS Bank Special
SBS Construction lending for FHB
SBS FirstHome Combo
SBS FirstHome Combo
SBS Unwind reverse equity
TSB Bank
TSB Special
Unity First Home Buyer special
Unity Special
Unity Standard
Waiarapa Building Society
Wairarapa Building Society
Westpac
Westpac - Choices Everyday
Westpac Choices Everyday
Westpac Offset
Westpac Special