About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, November 19th, 4:49PM
rss
Latest Headlines

It's raining rate relief!

Thursday, May 15th 2008, 11:14AM 1 Comment

by Philip Macalister

A sudden and unexpected easing in home loan rates this week is to the property market, what a bit of rain is to drought-stricken farmers.

The past few days have seen rates in the shorter end of the interest rate curve fall quite significantly – up to 45 basis points in some cases – taking two-year rates down to the 9.40% mark.

While these are not cheap by historical standards, they are significantly better than what homeowners and buyers could have secured a couple of weeks ago.


One of the interesting things about the changes is that that for some time the five-year rates have been the cheapest in the market – and therefore appealing to many borrowers. These rates have remained static over the past week and now we are seeing shorter-term rates on par with longer-term ones, or in some cases lower.

While the falls are good news, they are just the first drops of rain in a struggling market.

There are still two major issues facing buyers. One is that banks are tightening their lending criteria – or more accurately, they have done the tightening and don't appear to have much intention of loosening things up. Secondly non-bank lenders are struggling, with more falling by the wayside in recent times.

I guess the big issue people are pondering is whether or not these interest rate falls will help stoke up the flame which has been burning under the housing market.

My guess is a muted yes.

For people who can meet the lending criteria or have cash on hand then they are likely to start getting more active.

Also astute buyers will know that it is not easy to pick the bottom of the market. To wait until prices are rising again maybe too late – well, too late to get the best bargain anyway.

As one real estate agent said: "It is very hard to judge the bottom of the market but most people will miss out on the real bargains as they will wait until the prices are going up and confidence returns before buying."
« All just a bunch of rose-tinted glasses?Rate cuts predicted, but beware »

Special Offers

Comments from our readers

On 24 May 2008 at 2:38 pm Hamish said:
I think this market is a welcome relief for some. My personal view is that if you can afford to hold on to a property and you are claiming tax against it, don't get caught in the hype and start thinking about cashing up. Its not a good time to sell, don't forget this is a great country to live in and people want to move in here. I think we need to open our doors a little and things should get moving again.
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    1 day ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    1 day ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    1 day ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    2 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    2 days ago by regant
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
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

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

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