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Thursday 18 July 2024  Add your comment
Understanding of financial fairness measured; ANZ Fixed Home Loan rates change

What constitutes fairness in financial services is generally something people agree on. [READ ON]

ANZ has made changes to some of their Fixed Home Loan rates today.

 “We want to remind people that anyone feeling financial pressure should to talk to us earlier rather than later. We’re here to support our customers and have a range of options for both our personal and business customers to help ease financial pressure,” ANZ NZ Managing Director for Personal Banking, Grant Knuckey said. [See here]

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Strong disapproval of ban on low home deposits

Nearly 40% of New Zealanders would disapprove of any Reserve Bank move to require home buyers to have a minimum 20% deposit, a HorizonPoll survey finds.

Friday, May 24th 2013, 10:47AM 7 Comments

Horizon said 36.6% of respondents would approve if a deposit requirement were imposed by the Reserve Bank using a new tool in order to help deal with high housing demand and prices in Auckland and Christchurch.

However, 24.4% are not sure when asked if they would approve or disapprove of minimum 20% deposits being required to secure a mortgage from a bank in New Zealand.

The Horizon Research survey finds there is majority support (50.8%) for the Reserve Bank's move to require the four largest Australian owned banks operating in New Zealand (ANZ, Westpac, BNZ and ASB) to have greater reserves to cover any default by home owners with high loan to value ratios. Only 18.3% oppose the need to have larger reserves, while 30.9% are not sure.

Opposition to the idea of requiring a 20% deposit for bank mortgages  runs in a strong seam among those aged 18 to 54 year-olds (between 42.7% and 48.8% disapprove),  and middle to higher income households.

By occupational group, disapproval is highest among labourers, agricultural and domestic workers (61.2%), teachers, nurses, police and other trained service workers (59.5%), business managers and executives (58.2%)  and homemakers not otherwise employed (54.5%).

Approval is highest among those aged 55+ and retired superannuitants (49.7% approve, 13.6% disapprove).

In comments on the impacts, if any, which higher deposit requirements may have most respondents said it would be severe. Many complained it would delay or end their intention to buy. Others complained they were not on a level playing field: that overseas buyers were borrowing at lower interest rates offshore – and bidding prices up on the New Zealand market.

« Kiwibank outlook downgradedANZ cuts one-year rate »

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Comments from our readers

On 24 May 2013 at 11:12 am Jeff Royle said:
Restricting high LVR loans will have no impact at all on the property cycle. They are a small part of the overall picture and the main issue is lack of supply. The Government needs to address this and not play with the commercial activities of the Bank or play with the emotions of Kiwis wanting to buy their first home.
On 24 May 2013 at 11:46 am Bob said:
The Government needs to remember that NZ Banks did not suffer the same as the overseas banks during the credit crunch because in New Zealand the banks had policies that were resilient for their low equity lending. Are the Government not also by hypocritical by telling the banks they need 20% deposit and then offering the Welcome Home Loan themselves?
On 24 May 2013 at 11:50 am Financial Adviser said:
Remind the 55+ age group who approve of the ban that their children are likely to become dependents again, and the legal obligations of a guarantor !!
On 26 May 2013 at 11:38 am Dee said:
"Level playing field"! The four banks which are Aussie owned now (because Kiwis felt they had better uses for their money, like baches and boats) should have a higher reserve ratio...why not the Kiwi-owned banks too? They charge us just as much as the others, in spite of the nice noises they make.

About 'international buyers' pushing up prices...we actually mean Chinese buyers, don't we? (Although UK buyers are the biggest percentage). We don't really mind Aussies, Yanks and Europeans, do we? But its the Chinese who have real money!

Lastly about unpopularity of low equity lending...shows lack of basic financial literacy. Simple: the more you borrow, and the longer you take to repay, the more you pay. And these same people will grumble about high interest rates.

On 9 July 2013 at 1:01 pm Li said:
All I know is that we would love to own our own home, but will never be able to afford a 20% deposit... even 10% is a struggle but the last bank we spoke to suggested we sell our car to cover the rest of the deposit... We know we can afford the repayments, but deposit requirements mean we will be well into our retirement age before we can buy...
On 9 July 2013 at 2:16 pm Adviser said:
Come on Jeff, how many of your first home buyer clients borrow 80%+? A fair few I have thought or is that not your market..?
On 1 October 2013 at 7:00 pm Glenda said:
My husband and I both have MBA's earn over $100K each with two kids. We've been renting since moving to NZ 8 years ago. We've been saving to buy a home, but thanks to the minimum 20% requirement, we're now forced to move to Australia. What is the cost of that on the economy?

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 ▼7.45 ▼7.09 ▼6.95
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼6.85 ▼6.49 ▼6.35
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼6.85 ▼6.49 ▼6.39
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.45 ▼7.09 ▼6.99
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.59 - -
Co-operative Bank - Owner Occ 8.40 ▼6.79 ▼6.49 ▼6.35
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.29 ▼6.99 ▼6.85
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 ▼6.69 ▼6.35 ▼6.15
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 ▼7.75 ▼7.39 ▼7.19
Kiwibank - Offset 8.50 - - -
Kiwibank Special - ▼6.85 ▼6.49 ▼6.39
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 6.89 6.75 6.39
Median 8.64 7.14 6.82 6.44

Last updated: 19 July 2024 9:21am

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