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Mortgage Rates Daily Commentary
Friday 20 September 2019  Add your comment
SBS rate cut; OCR preview

Good morning.

As Spring kicks in, another bank has slashed mortgage rates.

SBS Bank’s 3 year rate drops to 3.89%, level with ASB. Check out our rates table here.

Meanwhile, economists have told us they don’t expect the Reserve Bank to cut the Official Cash Rate next week. See why here: [READ ON].

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TSB's profit up, loan book down

TSB Bank's net profit rose strongly in the June quarter, as did its deposit book, but its mortgage book shrank slightly.

Wednesday, August 27th 2008, 6:45AM

by Jenny Ruth

Net profit for the three months was up 12% to $11.8 million and its deposits from customers grew by $100.4 million to $2.98 billion.

TSB's mortgage book slipped from $1.83 billion at the end of March to $1.82 billion at the end of June. That's the first time its mortgage book has gone backwards since Good Returns began tracking it in December 2002.

Using Reserve Bank figures as a proxy for the market, that suggests TSB's share of the mortgage market eased from 1.22% in March to 1.2% in June. (With the introduction of the new Basel ll rules from the March quarter for all except the Bank of New Zealand and HSBC which are still reporting under the old Basel l rules, the Reserve Bank figures are no longer as good a proxy as previously. The actual total of the seven home lending banks at March 31 was $143.7 billion compared with the Reserve Bank's figure of $150.12 billion.)

The loan-to-value (LVR) details show 90.4% of TSB's mortgage book is at LVRs below 80% with just 3.4% at LVRs above 90%.

TSB deputy managing director Kevin Murphy says the shrinking of the mortgage book reflects customers repaying debt.

"Our net position has tapered off a little, but we're still writing good business at similar levels as we have in the past," Murphy says.

TSB's past due residential mortgages rose slightly from $1.98 million, 0.11% of the total book, in March to $2.17 million, 0.12%, in June.

Murphy says both this and the concentration on repaying debt reflect the depressed state of the economy.

"We're still confident past due assets won't end up being bad debts. It's just a timing thing for a lot of people and their ability to make loan repayments," he says.

Two months into the September quarter and TSB's mortgage book has remained "very steady".

The growth in the deposit book reflects concerns about finance companies, Murphy says.

« What regulation means for brokersKiwibank lifts profits and mortgage market share »

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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 ▼3.89
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 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

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