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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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Short-term borrowing opportunities shrinking

Christmas is coming and mortgage rates are falling. The Good Returns mortgage rate table is looking festive as it registers scores of reductions by lenders. Borrowers now need to consider how much lower homeloan rates will go and whether it is time to lock into one of the new fixed rate deals.

Friday, November 28th 2008, 8:41AM
Economists at Westpac believe they have the answer. In this week’s economic briefing they state: “Wholesale interest rates imply a very deep and front- loaded easing cycle by the RBNZ, and much of this has already been reflected in lower mortgage rates. The advantage to floating or fixing for a short term is diminishing now, and borrowers should be looking for opportunities to extend the duration of their debt.”

The Reserve Bank is due to set the new Official Cash Rate (OCR) next week and some economists believe that the reduction could be as much as 150 basis points, bringing the OCR down to 5%.

But the market view is that the round of cuts in home loan rates implemented over the past week or so has anticipated a steep cut in official rates. It would certainly make sense for lenders to set out their stalls now – with a month to go until Christmas - rather than waiting until the OCR is re-set just as the public’s attention turns in earnest to parcels and parties. As to whether economic conditions will justify further cuts in homeloan rates in the New Year, if the events of the past few months have taught us anything it is that conditions can deteriorate beyond the expectations of even the most informed market commentators, and fast.

The latest round of cuts should certainly encourage borrowers to look at the rate they are currently paying and work out whether, if on a high fixed rate, they can save money by refinancing even after the costs are taken into account.

With floating rates now starting at Kiwibank’s market-leading 7.95%, floating does not seem a high risk option but every borrower’s circumstances are different and not everyone will want, much less be able to switch to the lowest rates in the market.

Mortgage shoppers need to remember that the deal you are able to strike now will depend heavily on how much a lender wants your business; the less equity you have in your property the less attractive you will be. For those who can shop around it may make sense to hedge bets by splitting debt between fixed and floating rates.

« ANZ and NBNZ make borrowing harderOCR 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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