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Mortgages

Mortgage Rates Daily Commentary
Friday 1 November 2024  Add your comment
Rise in households struggling with mortgage repayments; RBNZ: house prices still near top of sustainable levels

Mortgage arrears continue to rise but are still low by historical levels. [READ ON]

The Reserve Bank says house prices remain near the top of its estimate of sustainable levels and remain “a stretch” for many would-be buyers. [See here]

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Despite slowing sales confidence up

Housing confidence remains stable, despite the war in Iraq, the leaky homes scare and global economic uncertainty according to the ASB Bank quarterly housing confidence survey.

Tuesday, April 8th 2003, 7:02AM
About 40% of those surveyed throughout the country believe it’s a good time to buy a house. When contrasted with the 20% who believe it’s a bad time to buy, net confidence sits at 20%, three points higher than last quarter.

The majority of New Zealanders (net 56%) believe that house prices will continue to increase over the coming 12 months.

“These results are indicative of the healthy state of the household sector at present, the fast pace of population growth, the active nature of the housing market and the relatively low level of interest rates by New Zealand’s standards,” ASB Bank chief economist Anthony Byett says.

“The survey continues to reveal that people’s sense of a bargain in the housing market has long gone, evidenced by the dichotomy between relatively strong expectations of higher prices and the relatively moderate numbers believing now is a good time to buy, especially in Auckland,” he says.

Auckland is completely out of step with the rest of the country with just 5% (net) who believe it’s a good time to buy a house.

“However, considering house sales in Auckland have been bubbling along over the last few months, the Auckland result shows a difference between what Aucklanders believe and what they’re actually doing,” Byett says.

“There are more people looking for somewhere to live – that’s the key driver in the housing market at present and builders are working frantically to catch up with this demand. This is not likely to change.

“What’s more, there is keen investor demand in housing also. Returns elsewhere have been low, house prices are rising and so too are incomes and rents “Add in lower fixed home loan rates and owner-occupiers and investors alike are in a relatively better position today than a year ago, on average, even after the house price increases.

“As always, there are risks: SARS (Severe Acute Respiratory Syndrome) could reduce the foreign student inflow; the government could lower its residency approval target; more Kiwi’s could opt for Australia.

“But none of these risks are mainstream forecasts. For now the housing market is busy, demand doesn’t look like it’ll decline and supply of houses is still tight. It remains a positive environment for housing,” Byett says.

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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 ▼6.39 ▼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 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼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 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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