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At last....some banks change rates

Friday, September 9th 2016, 8:27AM 1 Comment

Kiwibank has shaved 10 basis points off its two-year special rate. It's not the lowest in the market, but it compares well with others. [See here]

Meanwhile The Co-operative Bank has gone the other way.

Tags: Mortgage Rates

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Comments from our readers

On 9 September 2016 at 9:58 am Winka said:
It's all about maintaining 'margins'.

The phenomenon becomes more noticed as the world adds countries (economies) to the list who head towards deflation.
Mortgage rates do not continue in parallel with the OCR ad infinitum!

Sure, when the OCR is 'up there', the mortgage rates can virtually follow them down....however, when the OCR arrives at (current) lower levels, we do not enjoy the parallel falls of yester-year.
The reason is because banks have to retain their margins.
The banks borrow from overseas as we are aware, and as the OCR falls they move to borrow off domestic depositors.

This 'phenomenon' is going to surprise many, particularly property investors, who are going to even experience 'rises' in mortgage rates.
There are many who now fit into this more 'aware' group, and that is resulting in us seeing a growing number exiting (or at least not 'entering')the Auckland residential property market?

We do not see public condemnation of the huge margins made by the banks (to help satisfy their shareholders) as we experienced with the condemnation of the finance companies, who, after all, were the backbone of support for property developers.

Someone once said that the banks are a form of 'boys club', where they are unique in an ability to create money (eg: overdrafts) out of virtual thin air.
In contrast, the poor 'condemned' finance companies simply did not have that perk, and their inbound'depositors' funds dried up, virtually overnight.
The banks, when faced with the same dilemma, simply 'created' more money for themselves....and survived?

Try opening a bank to test whether that suggested 'boys club' exists.
I understand that you are not even allowed to use the word bank at all....even in the name of your shop?

Maybe someone will work out that it may be a good idea to resurrect those old finance companies, and when times occasionally get tough, give them a controlled ability to create their own form of overdrafts??


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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone ▼3.49 ▼3.49 ▼3.49 ▼3.49
BNZ - Classic - ▼2.55 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
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 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 13 July 2020 7:38am

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