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Mortgage Rates Daily Commentary
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Record January lending; Prospa plans extra NZ funding

Last month saw the highest January home lending volumes since records began, according to the latest RBNZ data: [READ ON]

SME non-bank lender Prospa plans to bring in a "senior funder" to grow its New Zealand loan book, after recording a 37% increase in loan originations in the six months to December: [READ ON]

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Borrowing strategies changing

Borrowing strategies for people with home loans are changing as New Zealand starts on the next part of its interest rate cycle.

Tuesday, November 11th 2008, 11:16PM
With interest rates rising and staying high over the past few years, the prudent strategy tended to be to take a fixed rate and lock in a rate, giving borrowers some protection.

Now that rates have started falling and dropping sharply, the preferred strategy emerging is to go for a floating rate or a very short fixed term rate.

In July the Reserve Bank cut the official cash rate (OCR) for the first time in five years. This 25 basis point cut was followed by further cuts that brought the rate down from 8.25% to 6.50% in three months. Further cuts are expected this year, with one group, Goldman Sachs JB Were arguing for an 100 basis point cut this month.

Borrowers going for floating rate home loans directly benefit when official cash rates fall.

However, while variable rates have tended to move in lock-step with the OCR in recent years, that bond is breaking.

Earlier this year banks increased their floating rates although the OCR was unchanged.

Consequently the lenders’ margins increased. Now the OCR is falling it has become clear, from research done by www.goodreturns.co.nz, that not all the falls are being passed on and lenders’ gross margins have increased. In fact the margin between the OCR and carded floating rates for lenders has increased.

« Floating rates find legsOCR cut to 7.5% »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 3.95 4.15 4.49
ANZ Special - 3.45 3.65 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.49 3.55 3.89
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
Lender Flt 1yr 2yr 3yr
China Construction Bank Special - 3.19 3.19 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.65 4.80 -
HSBC Premier 5.24 3.54 3.20 3.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.97 4.05 4.39
Kiwibank 5.15 4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Lender Flt 1yr 2yr 3yr
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.39 3.55 3.89
Sovereign 5.30 3.89 4.05 4.39
Sovereign Special - 3.39 3.55 3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
Lender Flt 1yr 2yr 3yr
TSB Bank 6.09 4.19 4.35 4.69
TSB Special 5.29 3.39 3.55 3.89
Wairarapa Building Society 5.50 3.95 4.05 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.55 3.99
Median 5.34 3.96 4.09 4.39

Last updated: 21 February 2020 4:32pm

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