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, August 3rd, 9:32PM

Mortgages

Mortgage Rates Daily Commentary
Monday 3 August 2020  Add your comment
BNZ slashes rates; Trouble in Queenstown

BNZ has slashed its 18 month home loan to 2.65% this morning, while its three year falls to 2.79%. Investors and owner-occupiers can access the same rates. View the latest rates here.

While interest rates continue to fall, there's cause for concern in the rental market. We look at how Covid has hit the Queenstown rental market: [READ ON]

rss
Latest Headlines

Home loan report: Slow trickle

Rate changes have slowed to a trickle over the past week as the mortgage market settled following the latest cut in funding costs.

Thursday, June 26th 2008, 8:37AM

by Maria Scott

Most of the changes of the past few days have been from non-bank lenders. These lenders were generally slower than the banks to move rates after the fall in wholesale funding costs prompted by the Reserve Bank's prediction on 5 June that the official cash rate (OCR) would be coming down by the end of the year, earlier than anticipated.

Some of the reductions coming through from the non-banks have been steep; United Home loans for example has reduced rates on one, two and five-year terms by 50 basis points.

Economists are continuing to recommend that those who need to refinance now should look to fix for six months or one year in the hope that cheaper funds will be available at the end of those terms.

Westpac has trimmed its six-month rate by 10 points to 9.75% where it sits in the mid-ground of prices over this term. Rates over six months now range from 9.6% to 9.95%. Rates over one year range from 9.3% to 10.95%.

One-year terms may be tempting for many as they are cheaper than six-month finance and allow for the possibility that rates do not fall in a straight line. Borrowers should note that lenders' advertised rates are often negotiable, particularly through brokers, and that some lenders offer discounts on larger loans. Presto Direct, formerly Presto Mortgages, a non bank lender set up two years ago, has just relaunched its range, offering brokers the opportunity to offset commission from the lender to offer discounts to clients.

Mortgage rates may be falling but conditions in the property market remain difficult, as confirmed by the news that another finance company, St Laurence has ceased lending and raising funds from the public. The company says that it has been hit by late payments by property developer borrowers as well as low levels of reinvestment by investors.

Even when the OCR begins to fall from its current level, 8.25%, there are doubts that rates will fall to the low levels of recent years. Tony Alexander, chief economist at the BNZ has forecast that the OCR will be close to 6% towards the end of next year. The two-year fixed rate for mortgages will fall to below 8.5% late this year and will hit the five-year average of 7.8% next year. But he thinks it is unlikely that it will fall to the 6.5% low seen in 1999, 2001 and 2003 in the forthcoming rate cut cycle.

« Bank reports show different mortgage risk appetitesKiwibank's mortgage book not as risky as it looks »

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 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 ▼2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.15 3.29 ▼3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
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 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.09 3.19 3.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.59 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.99
The Co-operative Bank - Standard 4.40 3.05 3.19 3.49
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.12 3.22 3.19

Last updated: 31 July 2020 3:01pm

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