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: Wednesday, May 27th, 9:51PM

Mortgages

Mortgage Rates Daily Commentary
Wednesday 27 May 2020  Add your comment
The Co-operative goes sub 3%; Mortgage lending drops to record low

The Co-operative Bank has sharpened home loan rates across the board, from six month to five year loans. Its one year rate comes in at 2.79%, joint second-cheapest in the market. Compare the latest rates here

Commentators hope record-low rates will boost the housing market, as mortgage lending dropped to a record low during last month's lockdown: [READ ON]

rss
Latest Headlines

Bollard keeps OCR at 3%, but tightening expected

The official cash rate has been kept at 3% due to weak spending and a soft property market, however some tightening is still expected.

Thursday, October 28th 2010, 9:12AM

The official cash rate has been kept at 3% due to weak spending and a soft property market, however some tightening is still expected.

"Continued household caution has seen consumer spending and housing market activity remain muted, and many firms have become less optimistic about their future," Reserve Bank governor Alan Bollard said.

Despite some data turning out weaker than projected, the medium-term outlook for the New Zealand economy remains broadly in line with that assumed at the time of the September Monetary Policy Statement.

Bollard said it was appropriate to keep interest rates at what he has previously called "a very stimulatory" level but tighter monetary policy will probably be "required at some stage".

New Zealand's economic recovery from the worst recession in 18 years took a dent this year as households shunned spending in favour repaying debt, while the property market dropped into the doldrums as incoming migrants tapered off and more kiwis looked across the Tasman for brighter employment prospects.

The central bank will want to see "actual growth and evidence that growth is becoming self-sustaining" before hiking rates again, UBS economist Robin Clements said. "We don't anticipate this to be until March next year" with the OCR reaching 4% by end of 2011, he said.

Last week, Bollard told Parliament's Finance and Expenditure Committee he expects consumer spending to pick-up when confidence returns, the labour market improves, and when producers finish paying off debt and can take advantage of the strong commodity prices they've been enjoying.

Consumer confidence took another step lower this month according to last week's ANZ Roy Morgan survey, with people holding off from buying major appliances, even as the government hiked consumption tax 2.5 percentage points to 15%.

Yesterday's National Bank Business Outlook showed companies were more upbeat this month as export season approaches, though the strong kiwi dollar weighed on their expectations for offshore sales.

Earlier this month, the New Zealand Institute of Economic Research, which puts out the quarterly survey of business opinion, said a string of downbeat data during the September quarter raised the threat of a double-dip recession and raised questions about the sustainability of the recovery. Along with GDP and inflation, the confidence survey is closely followed by the central bank when setting monetary policy.

« Stuttering economy likely to stay Bollard's handFloating mortgage rates unlikely to rise for several months »

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 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 ▼3.29 ▼3.45 ▼3.85
ANZ Special - ▼2.79 ▼2.95 ▼3.35
ASB Bank 4.45 ▼3.35 ▼3.19 ▼3.85
ASB Bank Special - ▼2.85 ▼2.69 ▼3.35
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - ▼2.79 ▼2.69 ▼2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.39 ▼3.29 ▼3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 2.80 3.15 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 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.80 ▼2.89 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC ▼4.40 ▼2.95 ▼2.95 ▲3.69
Kainga Ora 4.43 3.55 3.85 4.14
Kiwibank 4.40 3.74 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - ▼2.65 ▼2.79 ▼3.25
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 3.75 3.99 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 3.49 3.45 3.39 3.69
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 2.99 3.05 3.69
The Co-operative Bank - Owner Occ 4.40 ▼2.79 ▼2.95 ▼3.39
The Co-operative Bank - Standard 4.40 ▼3.29 ▼3.45 ▼3.89
TSB Bank 5.34 ▼3.59 ▼3.79 ▼4.19
TSB Special 4.54 ▼2.79 ▼2.99 ▼3.39
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.79 ▼2.79 3.39
Median 4.55 3.37 3.45 3.69

Last updated: 27 May 2020 8:50am

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
 
Site by Web Developer and eyelovedesign.com