tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, July 18th, 6:26PM

Mortgages

Mortgage Rates Daily Commentary
Thursday 18 July 2024  Add your comment
Understanding of financial fairness measured; ANZ Fixed Home Loan rates change

What constitutes fairness in financial services is generally something people agree on. [READ ON]

ANZ has made changes to some of their Fixed Home Loan rates today.

 “We want to remind people that anyone feeling financial pressure should to talk to us earlier rather than later. We’re here to support our customers and have a range of options for both our personal and business customers to help ease financial pressure,” ANZ NZ Managing Director for Personal Banking, Grant Knuckey said. [See here]

rss
Latest Headlines

Progress of DTIs stalls

Prospective debt-to-income ratios (DTIs) have hit a stumbling block on the road to their arrival due to Finance Minister Bill English’s ascension to Prime Minister.

Tuesday, December 13th 2016, 1:56PM

by Miriam Bell

Anticipation that the Reserve Bank might move to introduce DTIs in a bid to further cool the buoyant housing market has been building for some time.

The Reserve Bank has long been saying it has been doing work around DTIs but the bank’s governor, Graeme Wheeler, added fuel to the fire in his last Financial Stability Report.

He said the bank had officially asked Minister of Finance, Bill English, to agree to add a DTI tool to the Memorandum of Understanding on macro-prudential policy. 

At the time, Wheeler said a meeting with English was planned for the coming weeks.

Now, it seems that meeting has fallen victim to the change in New Zealand’s leadership ranks following former Prime Minister John Key’s surprise resignation last week.

The Reserve Bank has confirmed the planned DTI meeting with English has been cancelled and another one has not just been scheduled.

English was yesterday sworn in as Prime Minister and is now focused on a Cabinet reshuffle, which will include a new Finance Minister who is expected to be Economic Development Minister Stephen Joyce.

While English has said he plans to have the new Cabinet line-up in place before Christmas, this leaves little time for a meeting on DTIs between the Reserve Bank and the new Finance Minister.

This in turn means the Reserve Bank’s chances of getting a governmental agreement on DTIs any time soon are looking slim.

Following Wheeler’s earlier announcement on the DTI meeting, bank economists said they did not believe DTIs would be introduced before the end of next year.

The cancelled meeting is likely to blow even that time frame out further.

The prospective introduction of DTIs is controversial, with some commentators warning they could do more harm than good to the housing market.

However, in BNZ research released yesterday 57% of those surveyed supported the introduction of DTIs – although only a third thought they would have any impact on rising house prices.

BNZ chief executive Anthony Healy said he wasn’t surprised that a majority were supportive of DTIs as any measure targeting investors would go down well with those who aren’t investors.

But it’s important to stay focussed on the fact that moves by the Reserve Bank are predominantly conservative tools designed to de-risk the banking sector, he said.

“Ratios can have a real impact on first home buyers who may be on lower incomes when compared to their potential future earnings.”

It is worth noting that the Reserve Bank has said it is not proposing the use of DTIs at this time.

“But financial stability risks can build up quickly and restrictions on high-DTI lending could be warranted if housing market imbalances were to deteriorate further.”

Tags: banks BNZ DTIs Lending Macro Prudential Tools mortgages RBNZ Reserve Bank

« Housing market NZ’s biggest domestic risk - RBNZRising rates, quieter market »

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
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 ▼7.45 ▼7.09 ▼6.95
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼6.85 ▼6.49 ▼6.35
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 18 July 2024 10:19am

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  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com