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Mortgage Rates Daily Commentary
Friday 20 September 2019  Add your comment
SBS rate cut; OCR preview

Good morning.

As Spring kicks in, another bank has slashed mortgage rates.

SBS Bank’s 3 year rate drops to 3.89%, level with ASB. Check out our rates table here.

Meanwhile, economists have told us they don’t expect the Reserve Bank to cut the Official Cash Rate next week. See why here: [READ ON].

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Not much flavour expected in OCR announcement

The official cash rate is highly unlikely to move the week when the Reserve Bank issues its next Monetary Policy Statement. indeed it has been described by one economist as being a vanilla statement.

Monday, September 8th 2014, 9:52AM

When some flavour is added to future statements appears to have economists divided. All of those surveyed by mortgagerates.co.nz about this week's statement said there would be no change.

They argue that business sentiment has softened, the housing market is under control, and they worry about falling diary prices.

Their views on the remaining two OCR announcements for the year are largely the same - no change expected. Although three economists have penciled in a 25 basis point hike in December.

Harbour Asset Management economist Christian Hawkesby says there is "a very small chance of an increase in December".

The prevailing view is that the next increase in the OCR won't be until March next year.

However, Westpac chief economist Dominick Stephens warns the markets could be "under-pricing the true risk of OCR hikes".

"We suspect that the RBNZ’s take on the outlook for interest rates will be quite different to current financial market pricing, which suggests only one OCR hike between now and next June. But despite this underlying difference of opinion, now is not the time for the RBNZ to push the point. A general election is scheduled for just nine days after the MPS, and the outcome could render economic forecasts obsolete. We suspect that the RBNZ will take a softly-softly approach, and therefore any market reaction to the MPS will be muted. A relatively small increase in swap rates is the most likely response on the day.

"Whatever the tone of the RBNZ’s statement, it will remain our view that markets are under-pricing the true risk of OCR hikes. This provides an opportunity for borrowers to fix their interest rates."

 

« New course for mortgage advisersWhat the Reserve Bank said - Sept »

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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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