About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, September 19th, 9:02AM
Mortgage Rates Daily Commentary
Wednesday 18 September 2019  Add your comment
Home loan complaints against banks rise

Complaints against banks by home loan borrowers rose by 12.3% last year amid a rising number of declined applications, according to the Banking Ombudsman Scheme. [READ ON]

rss
Latest Headlines

Home loan report: On the home straight for cuts?

Home loan rates are, like petrol prices, starting to head down. But like petrol, there is plenty of uncertainty about where prices are going and if they will settle down for a while.

Thursday, August 14th 2008, 6:00AM
Thanks to the Reserve Bank and some competitive pressure amongst lenders, rates have been coming down for the past couple of months. Added to this good news were some recent comments from Reserve Bank governor Alan Bollard.

Following Treasury's latest review of the economy (where it talked about a recession) Dr Bollard made comments which were interpreted as sending a signal to the markets that they should expect a continuing series of interest rate cuts.

These comments pushed rates in the wholesale market down, thus giving lenders room to drop rates. The most high-profile of these is Kiwibank's three-year rate of 8.69%, but it must be noted that this rate has conditions, such as the borrower having at least 20% equity in the loan.

While a full-blown rates war is unlikely soon, borrowers can expect that banks in particular will fight hard to retain business over the coming months as the stakes are high. According to The NZ Mortgage Mag there is around $48 billion worth of home loans coming up for refinance between now and May next year. The bulk of these are loans taken out when the Bank of New Zealand kicked off its Unbeatable campaign.

What's the best deal at the moment?

That's a tricky question as home loan rates are expected to keep falling, but there is no certainty that the trend will continue or where and when they will reach a low point. Indeed at the moment caution levels are higher than normal because of the global credit crisis.

No-one knows how this process will play out over time, but it is clear it has raised the cost of borrowing offshore for lenders.

Added to that the downward pressure is coming from competition and from expectations of lower rates.

Bearing all this in mind, a prudent strategy, which has a good level of general approval, is to fix for a short term of around one year.

Current one-year rates from the main banks are pretty standard at 9.20%, however Bank Direct and Kiwibank are lower at 9.10% and 9.09% respectively.

While one-year is a favoured term, it is not the cheapest fixed term on offer. Rather it is one of the more expensive, with only six-month fixed rates higher.

At present standard two-year fixed rates from the big banks are sitting around the 8.95% market, three, four and five-year rates are around 15 points higher at the 9.10% market.

To keep up-to-date and compare home loan rates, click here.

« Fundit focuses on brokersEconomists unanimous on rate cut »

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
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.54 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 3.99
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 3.59 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 19 September 2019 9:02am

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