About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, November 18th, 7:42PM
Mortgage Rates Daily Commentary
Monday 18 November 2019  Add your comment
Kiwibank cuts one year mortgage; landlords reforms announced

Kiwibank has cut its one-year fixed term to 3.39%, a new low, despite the OCR remaining on hold: [READ ON]. See our full rates table here.

The government has unveiled major rental reforms. Find out more here: [READ ON]

 

 

rss
Latest Headlines

Quieter times ahead for housing market - ASB

New Zealand’s housing market has been on the boil this year, but ASB predicts it is set to cool to a simmer in the year to come.

Monday, August 8th 2016, 1:58PM

by Miriam Bell

ASB has just released its latest quarterly economic forecast and it suggests that quieter times are ahead for the country’s currently rampant housing market.

The bank’s chief economist, Nick Tuffley, said the Reserve Bank’s new lending restrictions should slow down the housing market up and down the country over the rest of this year.

“The sort of price growth a number of regions have experienced over the last couple of years will not be sustained. Expect 2017 to be much quieter on the housing front.”

But, in areas where supply is struggling to catch demand, the impact of the new LVRs is likely to wear off, he said.

“Auckland in particular is unlikely to see building consent issuance match population growth requirements for a couple of years.

“House prices in Auckland may bounce slightly in the first half of 2017, after a likely soft end to 2016.”

However, the new LVRs should give the Reserve Bank more room to move in its struggle with low inflation.

ASB’s report states that, despite solid growth and a respectable growth outlook, New Zealand’s inflation outlook remains weak.

“We don’t see inflation exceeding 1% until the second half of 2017, at which point inflation will have been below 1% for nearly three years,” Tuffley said.

This year has been shaped by the Reserve Bank’s ongoing struggle to manage the conflicting risks of the rampant housing market and the impact of a higher exchange rate on the inflation outlook, he said.

“The additional investor lending restrictions the Reserve Bank is introducing give the Reserve Bank a little more room to address low inflation with a reduced risk of inflaming the housing market further.

“We expect the Reserve Bank to drop the OCR to 1.75% by November and, if the NZD continues to hold up, an even lower OCR is possible.”

In a broader sense, New Zealand economic growth is forecast to improve, boosted by migration, construction and non-dairy exports. 

Tuffley said that migration inflows remain strong and will support growth, while the strength of the housing market and construction is rippling out to many regions. 

“At the same time, exports are faring well generally, with one recent standout being the kiwifruit sector’s record exports.”

New Zealand has managed to weather the volatile global economy well this year.

It also appears to be a good risk for overseas investors, according to the report.

This is because of its non-zero interest rates, reasonable growth prospects, and a degree of political stability that can no longer be taken for granted in many developed countries.

 

Tags: ASB interest rates OCR forecasts

« Bank risk real LVR targetMore cuts on the horizon »

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 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 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 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

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