Mortgage rate commentary: Little action
Bollard cut his official cash rate (OCR) 50 basis points from 3% to 2.5%. Traditionally, banks' floating rates have been about 200 basis points higher than the 90-day bank bill rate, currently 2.71% but the four major home lending banks' rates remain between 6.4% and 6.49%.
Bollard will review the OCR, which directly influences the 90-day bank bill rate, on June 11.
However, mortgage lenders continue to chip away at their six-months and one-year fixed rates. The latest to move were Public Trust, which cut its six-month rate 44 basis points to 5.4% and its one-year rate by 19 points to 5.5%, and Southern Cross, which cut its six-month and one-year rates by 20 points each to 5.49%.
Westpac has the lowest six-month rate at 5.39%, having cut it a couple of weeks ago while Southern Cross' one-year fixed rate is now equal lowest in the market with Westpac's.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
