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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]

 

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ASB opens the rate hike floodgates

ASB is the first bank to increase mortgage rates after the Reserve Bank hiked the Official Cash Rate (OCR) by 25 basis points to 2.75% last week.

Thursday, June 17th 2010, 2:20PM

by Jenha White

 

ASB has upped its floating and six-month rates by 25 basis points to 6.00% and 6.10% respectively and it has also increased its one-year rate by 10 basis points to 6.45%. The increases put these rates above the medians for the major banks.

Normally floating rates move in lock step with OCR changes but this time it has taken a stand-off of seven days for a bank to make a change with anticipation of the negative press the Australian banks took when they started raising rates.

It is expected now that ASB has started raising rates, other banks will follow suit.

ASB chief executive Customers, Markets and Products Catherine McGrath says this is the first increase in the OCR since July 2007, and further increases are anticipated over the coming months.

"The increases we are making today take into account both our offshore funding costs and the continuing pressure on retail deposit rates in New Zealand."

She says with overall funding costs having increased, ASB made the decision to lift its variable home lending and savings account rates by 25 basis points.

ASB's floating rate had been unchanged at 5.75% since September last year.

McGrath says the market is now entering a new cycle, and ASB needs to ensure its products are priced appropriately based on its underlying costs.

"With this in mind, we have also increased a number of our deposit rates today, ensuring our savings customers see the benefit," adds Ms McGrath.

The variable home lending rate change is effective as from 18 June for new customers and from 5 July for most existing customers. Fixed lending rate changes are effective as from 18 June for all new lending, and deposit rates change on 25 June.

 

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

« Banks in stand off over home loan increasesMore banks increase short term home loan rates »

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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

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