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Mortgage Rates Daily Commentary
Thursday 23 September 2021  Add your comment
Co-op rate increases; Smaller hikes to follow next month; Full licensing latest

The Co-operative is the latest bank to increase pricing on six month to five year terms today. Its one year special goes to 2.85%, level with ASB and Westpac.

Banks are poised to raise interest rates further next month despite a recent wave of increases in recent weeks: [READ ON]

Slow progress so far on the journey towards full licensing. Here's what the FMA said after approving 80 FAP licenses: [READ ON]

 

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Regulation 2013's big news: Report

Would-be buyers who have given up hope of getting into the property market because of the loan-to-value restrictions may be using their saved deposits to splurge on big-ticket items, the latest KPMG Financial Institutions Performance Survey says.

Tuesday, March 4th 2014, 6:00AM 1 Comment

by Susan Edmunds

The survey shows that profits rose 8.61% across the New Zealand banking industry in 2013, with an increase in lending assets of 4.35%.

But head of financial services John Kensington said regulation had been a big focus for banks in the past year and was the biggest threat to the industry’s “green shoots” over the coming 12 months.

“Before the LVR rule change the banks were probably writing 20% to 30% of their mortgages a month with a greater than 80%  LVR, now, they’re probably writing 4% to 6% of them with a greater than 80% LVR. There’s going to be spirited competition for anyone who’s a good loan.”

He said banks were now less likely to offer incentives such as “put your new car on the mortgage”, which was likely to push some of that consumer lending back to finance companies.

KPMG’s report said the rules had likely slowed rather than stopped activity but banking industry participants had suggested a number of possible unintended consequences.

One was that competition for homes in Auckland might be condensed into the $500,000 to $700,000 price range.

Another was that some people might decide they would have to be renters for life.

The report said:  “They may therefore be prepared to use deposit money for other things. If so, it may help to explain some of the economic upturn via expenditure at the end of the year, particularly where the finance companies sector saw a large increase in request for personal, boat, car and jetski-type of loans.”

The report said if the rules could avoid a price bubble until more supply came online, they would be a success. “If, however, they do not ease the house price bubble, and also keep people out of the market at a time when they could be investing, this would be undesirable.”

« Tide about to turn on low equity loansBorrowers still exposed to rates rises »

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Comments from our readers

On 6 March 2014 at 9:02 am Richard said:
The kneejerk reaction of introducing LVRs by the Reserve Bank has done Kiwis no favours. Effectively a whole generation of 'bottom-rung' starters have been wiped out from home ownership. If they aren't able to buy then prices rise and more property goes into foreign ownership. A massive 'Own Goal' by Wheeler.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲2.85 ▲3.25 3.55
ANZ 4.44 ▲3.20 ▲3.59 ▲4.00
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲2.60 ▲2.99 ▲3.40
ASB Back My Build 1.79 - - -
ASB Bank 4.45 ▲2.85 ▲3.25 3.55
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▲2.85 ▲3.25 ▲3.55
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 ▲3.45 ▲3.85 ▲4.15
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
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 Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.35 2.75 3.05
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 ▲3.80 ▲4.00 4.34
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 ▲2.95 ▲3.15 3.49
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.99 3.39 3.59
SBS Bank Special - 2.49 2.89 3.09
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.65 - -
The Co-operative Bank - Owner Occ 4.40 ▲2.85 ▲3.25 ▲3.49
The Co-operative Bank - Standard 4.40 ▲3.35 ▲3.75 ▲3.99
TSB Bank 5.34 3.35 3.75 4.05
TSB Special 4.54 2.55 2.95 3.25
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 ▲3.45 ▲3.85 4.09
Westpac - Offset 4.59 - - -
Westpac Special - ▲2.85 ▲3.25 3.49
Median 4.54 2.95 3.25 3.49

Last updated: 23 September 2021 8:11am

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