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Mortgage Rates Daily Commentary
Thursday 28 November 2024
Sizeable OCR cut expected in Feb; Banks rush to cut rates after RBNZ'S decision yesterday Another 0.50% drop in the OCR is expected from the Reserve Bank in February. [READ ON]
The Reserve Bank has cut its official cash rate (OCR) to 4.25%, in line with most economists' expectations, and says it's likely to cut further next year. ASB Bank and Kiwibank immediately published cuts in their lending and deposit rates while Bank of New Zealand swiftly followed. [See here]
Brokers need to lift their game
Current brokerage levels on mortgages will only stay at their current levels if brokers pick up their game, NZ Mortgage Brokers Association chairman Brian Berry says.
Wednesday, July 2nd 2003, 2:07AM
by Jenny Ruth
MortgageLink boss Roger Poulter said earlier that he is worried that some banks may no longer find accepting mortgage broker-sourced loans cost effective.
But Berry doesn’t think this is because current commission levels are too high.
"Roger is correct that the current brokerage levels are under threat, but this threat comes mainly from the cost associated with the extra processing required by lenders to cover poor presentation, poor deal quality and poor persistency rates (loans which are actually drawn down)," Berry says.
"There are no excuses for poor presentation. The broker must add value to the application process, otherwise they are not providing a professional service to either the client or the lender."
Some lenders are having to devote considerable resources to process loans but are finding anywhere between 40% and 60% of broker-sourced applications don’t result in actual loans, largely because the brokers are "farming" the same loan to several different lenders.
Berry says that it is impossible to have all applications result in loans – there are many other reasons apart from farming – but that having 70% of loans applied for settle is a realistic target.
"The mortgage broking industry in New Zealand can be sustainable at current brokerage levels if, and only if, brokers lift their game so that lenders can achieve efficiencies at their end."
Berry sees the trend towards aggregation – brokers banding together in larger groups – as a key factor assisting greater efficiencies in the industry, allowing lenders to reduce administration costs. He notes that about 70% of broker-sourced loans in Australia are written through 10 main groups and estimates the New Zealand market is at least as concentrated.
"These larger organisations will, to protect their lender relationships and reputations, quickly resolve and ‘problems’ within their organisations."
Also assisting the achievement of greater efficiencies is that brokers have been around in sufficient numbers for long enough to have developed a track record.
"Rather than making assumptions about what will happen with broker deals, we’ve got actual data which indicates where improvements need to be made. We’ve got black-and-white figures you can refer to, rather than a hypothetical pricing model and we also have a record of how long loans have stayed on the books," Berry says.
Commenting is closed
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Mortgage Rates Table
Full Rates Table | Compare Rates
Lender |
Flt |
1yr |
2yr |
3yr |
AIA - Back My Build |
▼4.94 |
- |
- |
- |
AIA - Go Home Loans |
▼7.49 |
5.99 |
5.69 |
5.69 |
ANZ |
▼7.39 |
▼6.39 |
▼6.19 |
▼6.19 |
ANZ Blueprint to Build |
7.39 |
- |
- |
- |
ANZ Good Energy |
- |
- |
- |
1.00 |
ANZ Special |
- |
▼5.79 |
▼5.59 |
▼5.59 |
ASB Bank |
▼7.39 |
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 |
▼7.54 |
- |
- |
- |
BNZ - Rapid Repay |
▼7.54 |
- |
- |
- |
BNZ - Std |
▼7.44 |
5.99 |
5.69 |
5.69 |
BNZ - TotalMoney |
▼7.54 |
- |
- |
- |
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 |
▼6.95 |
5.99 |
5.75 |
5.69 |
Co-operative Bank - Standard |
▼6.95 |
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 |
8.60 |
▼6.65 |
6.40 |
- |
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 |
▼7.25 |
6.89 |
6.59 |
6.49 |
Kiwibank - Offset |
▼7.25 |
- |
- |
- |
Kiwibank Special |
▼7.25 |
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 |
▼8.19 |
6.49 |
6.49 |
6.49 |
TSB Special |
▼7.39 |
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 |
6.05 |
5.79 |
- |
Westpac |
▼7.39 |
▼6.39 |
▼6.09 |
▼6.19 |
Westpac Choices Everyday |
▼7.49 |
- |
- |
- |
Westpac Offset |
▼7.39 |
- |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
Westpac Special |
- |
▼5.79 |
▼5.49 |
▼5.59 |
Median |
7.54 |
5.99 |
5.79 |
5.69 |
Last updated: 28 November 2024 9:27am Previous News
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Thursday, September 28th, 9:00AM
RBNZ announces OCR decision
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Tuesday, August 1st, 11:19AM
SBS eyes partnership with mortgage advisers
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Thursday, June 22nd, 9:00AM
OCR held again - here's what RBNZ had to say
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Thursday, May 11th, 10:26AM
Surprise at RBNZ’s OCR outlook
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Thursday, May 11th, 9:00AM
No change to OCR: What RB said today
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Monday, May 8th, 6:00AM
Focus on tone, not content, of OCR call this week
-
Tuesday, May 2nd, 11:10AM
ANZ half-year profit jumps
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Monday, April 24th, 10:23AM
Local flavour makes for bank winners
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