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Mortgage Rates Daily Commentary
Monday 9 December 2019  Add your comment
Warning on borrowing rates; Kiwibank rate rise

The Reserve Bank's new capital regime will lead to greater increases in borrowing rates than the RBNZ's estimate, economists have warned [READ ON].

Kiwibank has some rate increases this morning. Its 1 year special fixed rate is up to 3.45%, and 1 year standard rate is up to 4.20%. See the latest rates here.

 

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Kiwibank made little difference to mortgage market growth: Tripe

The mortgage market would have grown by about the same amount through the global financial crisis (GFC) even if the government-owned Kiwibank hadn't existed, says David Tripe, head of banking studies at Massey University.  

Thursday, November 25th 2010, 9:52PM

by Jenny Ruth

Kiwibank has dominated mortgage lending by registered banks since the December quarter of 2008 and, although its hectic growth has slowed in recent quarters, continues to lend at a much greater rate than its market share.

"Kiwibank is getting them (mortgages) because they've made the decision they want that business," Tripe says. In Kiwibank's absence, the mortgages it has been writing would have been shared around the other banks, making little difference to the overall amount of mortgages written, he says.

Excluding SBS Bank, which became a registered bank in October 2008, mortgage lending by registered banks rose $0.97 billion in the December 2008 quarter and Kiwibank accounted for a staggering 89.7% of that.

In the nine months ended June 2009, Kiwibank accounted for 45.9%, or $2.27 billion, of the $4.95 billion in mortgages written by registered banks. Over the following year, it accounted for 29.4% of the $6.34 billion written.

In September 2008, Kiwibank accounted for 3.76% of the bank mortgage market. By June 30 this year, it accounted for 6.11%.

"I don't think it (Kiwibank's existence) has made any difference as to whether the business has been done in the first place - maybe a little bit of difference at the margin," Tripe says.

Similarly, if the proposed "heartland bank," formed from the merger between Pyne Gould's Marac and the Canterbury and Southern Cross building societies, gains the banking licence it hopes for, it's unlikely to make a huge difference to how competitive the banking market is, Tripe says.

"They're simply going to be too small in any market segment - they will provide competition around the edges," Tripe says.

"Heartland bank" had total assets of $2.2 billion at June 30 compared with SBS Bank's $2.58 billion and its mortgage book was just $278.5 million.

 

« ASB's mortgage book shrinks for a second successive quarterKiwibank's growth momentum slows »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 3.99
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
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
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 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank ▼5.20 ▲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 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 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
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 3.99 4.07 4.39

Last updated: 9 December 2019 9:02am

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