tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, December 9th, 2:15PM

Mortgages

Mortgage Rates Daily Commentary
Monday 9 December 2024  Add your comment
Huge pile of mortgage money on short terms as borrowers wait for interest rate drops; SBS and Kiwibank rates change

While mortgage lending grows most borrowers are shying away from long term fixed rates as the Reserve Bank indicates it has more OCR cutting to do. [READ ON]

 

rss
Latest Headlines

UPDATE: Bollard holds OCR; expects to hike about mid-year

Reserve Bank governor Alan Bollard has left interest rates unchanged and reaffirmed his expectation he will begin hiking rates around the middle of the year.

Thursday, January 28th 2010, 10:44AM

by Jenny Ruth

The official cash rate (OCR) remains unchanged at 2.5%.

The statement was nearly identical to Bollard's last statement in December but left out comments about some uncertainties including whether increased household spending would follow rising house prices.

"You get the sense of slightly greater clarity about the first tightening being about the middle of the year," says Darren Gibbs at Deutsche Bank. "There's a sense of greater confidence."

Gibbs still expects Bollard to start hiking the OCR in April. "I get the feeling that the next couple of months' data is going to look reasonably solid. We will get some confirmation the economy is moving forward at a more solid rate."

Nick Tuffley at ASB Bank says Bollard's comments on inflation indicate he's "not unduly worried about the inflation outlook."

In particular, signs the housing market has run out of steam somewhat "has take away some of the urgency," Tuffley says.

While he still expects the first rate hike to come in April, Tuffley says rather than a few 50 basis point increases, they're likely to be more modest 25 point rises and that an OCR of about 5% will likely be about neutral.

But bank funding costs will still remain high and the gap between the OCR and mortgage rates is likely to stay significantly higher than before the credit crisis, Tuffley says.

Although floating mortgage rates are likely to rise quite rapidly, "things look a bit skewed in favour of floating remaining cheaper, although more volatile" than fixed-rate mortgages, he says.

Bollard also removed a comment in the December statement on the high New Zealand dollar hurting exports. Dominick Stephens at Westpac says the central bank probably thought the high exchange rate was unjustified but since then we've seen a rapid rise in dairy prices and the currency's rise was consistent with that. "Exporters are doing better not worse."

The currency has also weakened somewhat since then.

« OCR holds, mid-year rate hike still likelyBank liquidity requirements could keep rate hikes to a minimum »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard ▼7.69 6.69 6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.84 5.75 5.69

Last updated: 9 December 2024 10:05am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com