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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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Beginning of the end for fixed rates?

Is it the beginning of the end for the fixed rate mortgage so beloved of New Zealand home owners?

Thursday, October 2nd 2008, 10:34AM

by Maria Scott

New Zealand’s mortgage market has been dominated by fixed rate lending in recent years because fixed rates have generally been lower than floating rates.

The major development in the home loan market over the last week has been the withdrawal of long-term fixed rates by a number of lenders, followed in the last few days, by the withdrawal of all fixed rates. The move has been led by the funding arm of GE Money, which supplies mortgage finance to a number of New Zealand’s smaller, non-bank lenders.

Mainstream banks are still marketing fixed rates and, indeed, Kiwibank is actively promoting a sub-8%, two-year rate. But forces are at work in the upside-down credit markets that could see longer-term fixed rates eclipsed by much shorter-term fixes or even floating rates.

Commentators and advisers have been recommending shorter-term rates for several weeks and the trend is set to continue even if US legislators agree a rescue package for America’s troubled banking industry.

Nick Tuffley, chief economist at ASB Bank says that an agreement will restore some confidence to global markets, but globally risk premiums are likely to remain elevated for some time to come.



The trend in New Zealand’s official cash rate (OCR), set by the Reserve Bank, is likely to be the dominant factor in setting market rates here, he believes. The Reserve Bank may cut the OCR – which dominates the pricing of floating and short-term rates – to compensate for the high cost of bank funding in offshore markets.

“From here floating and shorter-term fixed rates will fall further, but there is likely to be far less downward movement in long-term rates if any. Financial markets have already built into long term rates a considerable degree of easing. Also, global risk premiums for long-term money are higher than those for short-term money.”

And, borrowers naturally gravitate to shorter-terms or decide to choose floating rates. 



To check and compare rates, go to our Mortgage Rates table.

« Asteron pulls the plugOCR cut to 7.5% »

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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 ▼3.49 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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