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Mortgage Rates Daily Commentary
Friday 20 September 2019  Add your comment
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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.

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Withdrawal of lending from GE affects non-banks

Mortgage lenders have this week been considering how they will cope with the decision by lender GE to stop funding loans through third parties in New Zealand and Australia.

Thursday, October 30th 2008, 3:22PM

by Maria Scott

The lender’s decision will come as a blow to the non-bank finance sector which has seen the withdrawal of numerous companies over the past year.

GE, with its sister company AMS had been one of the main sources of funds for specialist lenders and mortgage brokers in New Zealand, particularly for borrowers who did not fit standard bank lending criteria.

Louise Ledger, of Global Home Loans and Moorhouse Mortgages, based in Christchurch said that GE represented half of her funding although only 10% of business over the last year as GE’s lending criteria had tightened considerably. She has other lines of funding open through Moorhouse Mortgages but would be seeking new funding sources.

She said that she had been informed about GE’s decision last Friday afternoon and was working this week to finalise applications to GE by today (Friday 31 October), the funder’s cut-off date for new business.

Fraser Cann of Whangarei-based Presto Mortgages said the GE move would affect the company’s prime and specialist products including its 100% and credit-impaired loans.

Presto would suffer a reduced revenue stream but was funded by two other active funders and remained in a strong position.

William Cairns of the Cairns Lockie group said that GE’s announcement had been unexpected. His group had three other sources of funds including its finance company which had applied for a guarantee under the Government’s deposit guarantee scheme. This could result in the finance company being an important source of funds next year but Cairns said that the non-bank sector of the finance market would continue to shrink.

Freedom Mortgages (formerly Resi Mortgage Corporation) also received funds from GE but general manager Laura Gregory said she was unable to comment until directors had met.

GE has said that trail commission will continue to be paid to mortgage brokers on loans already in place.

« Rates dropping while funding dries upOCR 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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