About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, November 22nd, 10:04AM
Mortgage Rates Daily Commentary
Thursday 21 November 2019  Add your comment
ASB cuts mortgage rates; costs to rise under new regime?

ASB has joined Kiwibank in cutting its 1 year special rate to 3.39%, with 6 month home loans also cut from this morning. Two year rates, however, are increased by 10 basis points. Take a look at the latest rates here

In case you missed it on TMM Online, New Zealand's biggest adviser groups talked through the cost impact of the new regulatory regime. Find out what they said here

rss
Latest Headlines

New LVR rules to cut Auckland house price inflation

Thursday, June 4th 2015, 10:53AM

by Miriam Bell

Up to 4% could be shaved off Auckland’s house prices - thanks to the Reserve Bank’s new LVR rules.

Tighter LVR restrictions for Auckland investors will reduce Auckland house price growth by 2- 4% in the first year, the RBNZ has estimated in a new consultation paper.

At the same time, a loosening of the rules around required deposits for property outside of Auckland, should see house price growth of about 1% and a 4% increase in house sales.

The RBNZ expected that the investor restrictions, which will require a 30% deposit when borrowing for an investment property, will reduce Auckland housing market transactions by 7% in the first year.

This would equate to a 20% decline in property purchases by investors in Auckland.

Further, the RBNZ expected the restriction to reduce the share of high-LVR lending to owner occupiers by about 2%.

This will result in a further decline in housing market transactions of about 1%.

Over time, the policy will reduce the number of investors with debt in excess of 70% secured on Auckland property to a quarter, the RBNZ paper stated.

“This would reduce the proportion of loans in a position of negative equity in the event of a 30-40% decline in Auckland house prices.”

The RBNZ has said it believes this will better maintain financial stability, which is one of its main objectives.

While several property investor advocates are concerned that the policy will have a negative impact on the rental market, the RBNZ expected that the impact will be limited.

The RBNZ released the paper in preparation for the new rules, which come into force on October 1, and will be consulting on it until July 13.

Discussion of policy objectives and expectations, speed limits, mixed loans, measurement periods and transition arrangements are included in the paper which can be read here.
 

Tags: Macro Prudential Tools RBNZ

« ASB records bumper lending in first quarterNew era of responsible lending begins »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 ▼3.89 ▲4.05 4.39
ASB Bank Special - ▼3.39 ▲3.55 3.89
BNZ - Classic - 3.55 3.45 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 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 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 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.02 4.09 4.39

Last updated: 21 November 2019 9:39am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com