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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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More short-term rates rise

Weekly Home Loan report: The past week has been relatively quiet on the home loan front and it appears much of the attention is shifting to what the Reserve Bank will do it at its next official cash rate review on July 28.

Tuesday, July 5th 2005, 10:04AM

Economists suggest that the chance of another rates hike is fading as weaker economic data comes in.

However there is also a view that the Reserve Bank will hang tough with its rhetoric. What makes the picture slightly more confusing is that lenders seem to be contradicting this view.

Floating and short-term rates are principally set off the central bank’s OCR. When it goes up floating rates invariably go up by the same amount. Likewise six-month and one year rates closely follow the OCR.

With no changes in the cash rate recently and a growing view that it will remain unchanged one wouldn’t expect much movement in short-term rates. However in the past week the main trend was for lenders to push these rates up.

Those to move include ASB Bank, and other organisations related to it (Sovereign, Bank Direct, NZ Home Loans and AA Financial).

Another trend which www.goodreturns.co.nz has noted in past commentaries is for longer-term rates to fall.

In the past week this trend has again slowed with just a couple of lenders reducing rates in this area by around 10 basis points. Those to drop rates included ASB Bank, AXA and Bank Direct.

What’s the best option for people looking for home loan finance? Well it depends which camp you are in. Those who expect rates to start falling next year are suggesting that borrowers fix for 12 to 18 months, those with a more pessimistic view are suggesting that fixing for two to three years and locking in relatively cheap (historically) rates is the way to go.

What’s on offer? One year rates range from 7.60% up to NZ Mortgage Funds’ 8.58%. Five providers are offering 7.60% including two Canterbury-based lenders, ABS Canterbury and SMC. The others are TSB Bank, Public Trust and Southern Cross.

Two year rates go from Kiwibank’s 7.35% to GEM Home Loans on 8.40% and three year rates range from 7.45% (BNZ and PSIS) up to 8.25%.

To compare rates Click HERE

« NZMBA says all mortgage brokers should be covered by task forceHouse prices look to be levelling out: QV »

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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 ▲8.15 ▲6.79 ▲6.45 ▲6.29
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 ▼8.10 ▼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 6.24 6.09 5.69

Last updated: 1 November 2024 2:24pm

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