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Mortgages

Mortgage Rates Daily Commentary
Friday 29 May 2020  Add your comment
Tough servicing tests remain; Westpac and TSB slash rates

Advisers have called on banks to lower servicing test rates as home loans plummet to record lows: [READ ON]

More rate cuts this morning. Westpac cuts two to five year special rates, reducing its three and six year loans by 60 basis points. 

TSB has cut its two year special by 20 basis points to 2.79%. Westpac and TSB's new rates are effective this morning. See all the latest market rates here.

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Tide about to turn on low equity loans

Banks low equity loan volumes are nowhere near the maximum allowed by the Reserve Bank’s speed bump restrictions.Tide

Friday, February 28th 2014, 9:18AM 1 Comment

The latest figures from the central bank show just 4.8% of the $3.09 billion lent in January was to people with deposit of less than 20%.

That figure fell to 3.8% after exemptions, such as Welcome Home Loans and construction finance, were taken out.

Under the speed bump restrictions introduced in October registered banks could only lend 10% of their mortgages to customers who had equity of less than 20% in a deal.

Before the restrictions were introduced 25.1% of lending was to low deposit home buyers in September. The January figure is down from 5.6% in December.

However this situation is likely to change. ANZ has told brokers that it has worked through most of the pre-approvals it had on its books when the restrictions started and is now looking to do more in the low-equity space.

It said that in the next month or so it will become far more active in this market and borrowers who have a strong ability to service a loan will be welcomed. It’s approach won’t be to just existing ANZ customers.

Likwise Westpac has indicated it will be more aggressive in this market too.

 

« Brokers have role as banks turn off tapBorrowers still exposed to rates rises »

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Comments from our readers

On 28 February 2014 at 10:29 am mike hardy said:
I wouldn't go near either of the above mentioned banks for a low equity loan, Westpac made lots of empty promises to us a year before all these speed-bump restrictions were on the horizon then messed us around to the point we thought they were going to damage our credit rating, Anz we had a decent pre-approval with when these restrictions hit, they then trebled their low equity fee's under the radar and if I had not spotted the fact on their website (in the very small print) and pulled out of a multi-offer there and then we could have been in serious trouble.
In my personal opinion, there are better banks/places to go to for a low equity loan, my advice to all would be to shop around and read all the fine print/work out what it's going to cost you in fee's first.
Best of luck to all out there struggling for a homeloan

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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 ▼3.29 ▼3.39 ▼3.85
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 ▼3.59 4.19
TSB Special 4.54 2.79 ▼2.79 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 ▼2.69 ▼2.79
Median 4.55 3.32 3.39 3.69

Last updated: 28 May 2020 10:38am

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