Mortgage servicing rate cuts
Historically-low interest rates have been the focus since the Reserve Bank slashed the OCR to 1.0% earlier this month, but the banks’ servicing tests remained tough – limiting access to loans.
Now, that seems to be changing: In the last week, there has been changes in servicing rates from ASB, ANZ and BNZ.
Mortgage Supply Company’s David Windler says that each of these banks’ have reduced their rates from between 0.5% to 0.8%, which is good news for borrowers.
This long overdue easing of credit will lead to increased borrowing capability for all applicants and it also puts the banks’ actual servicing rates more in line with the advertised rates, he says.
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.
![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)
