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Last Article Uploaded: Monday, September 23rd, 10:48AM
Mortgage Rates Daily Commentary
Monday 23 September 2019  Add your comment
Westpac and BNZ rate cuts; NZ bank risk assessed

To kick off the week, both BNZ and Westpac have cut fixed mortgage rates this morning.

BNZ's two-year rate has fallen to 3.49% for owner-occupiers, and 3.74% for investors.

Meanwhile, Westpac's two-year fixed special is down to 3.54%, a 5 basis point cut.

See how two year rates stack up on our rates table.

Ratings agency S&P has done some more analysis on the NZ banking sector. It believes the industry is as risky here as it is in Iceland and Ireland. Find out more here: [READ ON].

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Debt servicing will be an issue: RBNZ

Borrowers who have never before encountered rising interest rates could get a shock this cycle, the Reserve Bank says.

Thursday, March 13th 2014, 10:05AM

by Susan Edmunds

It today raised the official cash rate (OCR) from 2.5% to 2.75%.

The accompanying monetary policy statement was hawkish, pointing to prices for export commodities, construction growth, a tightening labour market and rapid immigration.

Governor Graeme Wheeler said it was the first significant tightening in five years.

About three-quarters of borrowers are on floating or rates fixed for less than one year, so the impact of rises will be felt quickly.

He said borrowers’ debt servicing capacity would be monitored closely.

But he said runaway inflation was the biggest potential risk to the economic recovery and the Bank wanted to do what it could to contain that pressure to ensure the recovery ran as long as possible.

“Inflationary pressures are increasing and are expected to continue doing so over the next two years. In this environment, it is important that inflation expectations remain contained.”

He acknowledged that the Reserve Bank would be the first central bank in the developed world to raise rates this cycle, and the fears that could affect the already-high currency.

But he said the moves had been well signalled so there should be no significant increase in the dollar as a result of them being implemented.

Wheeler noted that house price inflation had slowed but said the pressure had not come off the market entirely.

House price inflation was running at about 8.4%, he said, but modelling had indicated that if the loan-to-value restrictions had not been introduced, it might be more like 11%. Wheeler said the Bank felt the rules were working and would not want to remove them until there was a better balance between supply and demand in the housing market.

The Bank is forecasting 100bps to 125bps of hikes this year, which would take the rate to between 3.5% and 3.75%.

It is forecasting a 90-day rate of 5.3% in March 2017, and more OCR increases beyond that time, a steeper rise than the markets have been pricing in.

« OCR up 25 basis pointsWhat the economists said »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.49 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 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

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