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Mortgages

Mortgage Rates Daily Commentary
Monday 28 September 2020  Add your comment
Australia scraps responsible lending laws — advisers react

The Australian government has axed responsible lending laws in "the most significant reforms to Australia's credit framework in a decade": [READ ON]

Kiwi mortgage advisers are hopeful that Australia's move to scrap responsible lending rules will lead to changes here: [READ ON]

Is it time for NZ to look at its Responsible Lending Code? Let me know what you think: daniel@tarawera.co.nz

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Loan-to-income restrictions favoured

An economic think tank supports loan-to-income restrictions on borrowers rather than the LVR restraints imposed by the Reserve Bank.

Monday, July 7th 2014, 10:52AM

The NZ Institute of Economic Research says an idea floated by the Bank of England to manage financial stability would be better than the approach taken by the Reserve Bank in New Zealand.

"We like the Bank of England’s proposed restrictions on high loan-to-income (LTI) mortgages better than New Zealand’s LVR restrictions.” NZIER principal economist Kirdan Lees says.

“Restrictions on high loan to income mortgages directly address the risk that the Bank of England is worried about: that very high household debt could cause a sharp economic correction in the future.”

High LVR mortgages only tell you that house purchases are made without much collateral. But LVR restrictions do not take into account households’ long-term ability to service debt.

The Bank of England has a policy solution to a well-defined problem: stopping soaring household debt that sits at the heart of financial stability risks. Controlling house prices is not part of the Bank of England’s problem.

LVR restrictions will constrain risky lending, but the gains look to be limited and the policy carries some unintended consequences. We should look at LTI restrictions, as they are better targeted at the risk of financial instability created when many people cannot repay their debt.

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« Responsible lending code creeps closer[MRadio] The not-so-special specials »

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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 3.15 3.25 3.39
ANZ Special - 2.55 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 - - - -
Heretaunga Building Society 4.99 3.85 3.95 -
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
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
SBS Bank 4.54 3.05 3.19 3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.69 2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 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 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.00 3.13 3.02

Last updated: 21 September 2020 10:48am

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