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: Friday, October 30th, 12:14AM

Mortgages

Mortgage Rates Daily Commentary
Thursday 29 October 2020  Add your comment
How low could mortgage rates go?; Co-op slashes rates

With the Reserve Bank poised to offer more support to the economy, ASB economists predict home loan rates will plummet further into the new year: [READ ON]

Rates continue to fall. The Co-operative Bank, which last week launched a 2.25% rate for first home buyers, has slashed 6 and 12 month loans for owner-occupiers. The one-year special falls to 2.49%. See how it compares

rss
Latest Headlines

Interest rate focus moves to when next increases start

Reserve Bank governor Alan Bollard is likely to leave interest rates unchanged this Thursday and the focus will be on how upbeat or otherwise his comments are.

Monday, April 25th 2011, 10:06PM

by Jenny Ruth

Bollard's official cash rate (OCR), from which floating mortgage rates and other short-term interest rates are set, stands at 2.5%, the lowest it's ever been, following last month's "emergency" cut from 3% in the wake of Christchurch's devastating earthquake.

All 13 economists surveyed by Good Returns expect Bollard to leave the OCR unchanged with the debate shifting to when he will starting raising the OCR to more normal levels.

Darren Gibbs at Deutsche Bank expects Bollard's comments "will appear slightly more upbeat, if for no other reason that the passage of time means that the statement will dwell less on the destruction in Christchurch and more on the eventual recovery."

However, given the near-term uncertainties surrounding near-term economic performance, Bollard is likely to simply reiterate that future OCR rises will be guided by emerging data, Gibbs says.

Jane Turner at ASB Bank says Bollard is likely to highlight that uncertainty. "It remains clear that the New Zealand economy remains fragile and in need of continued monetary support," she says.

Some economists are starting to fret about future inflation pressures. Tony Alexander, chief economist at Bank of New Zealand, says inflation data earlier this month showed inflation is at the average level of the past 10 years, despite near zero economic growth, above average employment, spare capacity in the economy and a rising currency.

"Imagine what will happen next year when growth heads towards 4%, the unemployment rate veers toward 5% (from 6.8% currently) and businesses look to rebuild margins which have been crimped since 2008," Alexander says.

However, Annette Beacher at TD Securities says she can't see any inflation in the New Zealand economy. "I think pricing power is negligible in New Zealand and the currency's likely to keep a lid on it (inflation)," she says.

Bollard needs to stop talking about the temporary nature of the currently low OCR, Beacher says. "A slightly dovish view would be most welcome."

« To fix or float? That is the questionOCR unchanged and likely to stay that way for some time »

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 2.55 2.69 2.79
ANZ 4.44 ▼3.09 3.25 3.39
ANZ Special - ▼2.49 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.95 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 3.05 2.99 2.99
SBS Bank Special - 2.55 2.49 2.49
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 ▼2.49 2.69 2.79
The Co-operative Bank - Standard 4.40 ▼2.99 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.49 2.69 2.79
Median 4.55 2.94 2.99 2.80

Last updated: 29 October 2020 5:00am

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