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Mortgages

Mortgage Rates Daily Commentary
Tuesday 5 November 2024  Add your comment
Banks asses what stressors could destroy capital buffers; Kiwibank lifted its home loans business; Advisers wrote 63% of Westpac's new mortgages

The Reserve Bank has had 13 banks design “severe but plausible” stress tests that would cause their capital to drop below regulatory minimums and the results show that it would take a set of more severe stresses than RBNZ's own stress scenarios. [READ ON]

Kiwibank has lifted its home loans business to now have an 8% market share, with about 64% of its mortgage business originated by advisers. [See here]

Mortgage advisers accounted for 63% of Westpac's new mortgage lending in the year ended September, the bank's chief executive Catherine McGrath told TMMO. [See here]

 

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Homes less affordable

Nation-wide home affordability has dropped by 25.8 per cent over the year to June, the steepest national decline in almost five years.

Sunday, July 30th 2000, 12:00AM

by Paul McBeth

Nation-wide home affordability has dropped by 25.8 per cent over the year to June, the steepest national decline in almost five years.

That's just one of the findings of the latest AMP Banking Home Affordability Survey. Softening house prices in most regions also failed to offset higher mortgage rates, meaning that affordability has now declined for the fourth quarter in a row.

AMP Banking's Marketing Manager, Karen Clough, said the decline in home affordability had largely been driven by gradual increases in mortgage rates.

"Reversal of this trend will result in a return of market confidence and an improvement in home affordability."

While homes in eight of the 11 regions surveyed became less affordable in the June quarter, three showed an overall improvement thanks to lower median house prices. These were Taranaki (10.5 per cent more affordable), Manawatu/Wanganui (4.8 per cent) and Southland (3.4 per cent).

The affordability survey is prepared quarterly for AMP Banking by Massey University's Real Estate Analysis Unit. It has been conducted since 1988 and combines data on housing prices, mortgage interest rates and average weekly earnings to produce a home mortgage affordability index.

 

Home mortgage affordability

(the lower the index figure, the greater the affordability)

Region

Index figure:

Feb 2000

Index figure:

May 2000

Percentage decline over last 12 mths

Northland

15.95

17.52

5.70%

Auckland

26.16

27.39

26.42%

Waikato/BOP

18.87

20.24

20.30%

Hawkes Bay

15.60

15.97

15.04%

Manawatu/Wanganui

14.15

13.46

18.87%

Taranaki

12.88

11.53

19.75%

Wellington

18.88

20.13

33.29%

Nelson

16.48

17.41

23.70%

Canterbury/Westland

17.10

18.84

31.33%

Otago

11.62

13.16

46.75%

Southland

9.50

9.18

23.34%

New Zealand

19.39

20.79

25.79%

Data from the AMP Banking Home Affordability report, prepared by Massey University's Real Estate Analysis Unit. For more information, click here

Paul is a staff writer for Good Returns based in Wellington.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 ▼6.49 6.49 6.49
TSB Special 7.89 ▼5.69 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼8.10 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.07 5.79 5.69

Last updated: 5 November 2024 9:19am

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