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Mortgage Rates Daily Commentary
Thursday 28 November 2024  Add your comment
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]

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Kiwibank sees its product with competitors

Kiwibank chief executive Sam Knowles expects brokers to take up Housing New Zealand Corp’s Welcome Home Loans in their product suite, and the offering to impact the first home loan market.

Monday, August 22nd 2005, 6:53AM

State-owned Kiwibank has worked with Housing NZ, which provides mortgage insurance to the Welcome Home Loan providers that also include the Nelson Building Society, TSB Bank and SBS.

Knowles sees the product, which has attracted good business for Kiwibank worth “a couple of hundred million” as having a wider offering in future.

“We’ve run it now for a year and a half – we ran it as a pilot for Housing New Zealand but it’s been now expanded to a whole number of organisations,” he said.

“Now TSB is offering it SBS is offering it – some of the banks are offering it – so I suspect it will flow through to brokers over time as other banks come in.

“It’s not a restricted product at all, although obviously it has restrictive underwriting conditions. “So I think the first home loan market will change as that product gets more widely known – it allows them to bridge that gap that’s opened up in property prices for first home loaners,” Knowles said.

Under the Welcome Home Loan people wanting to buy a home can borrow up to 95% or even up to 100% with someone gifting that last 5%.

Knowles says he thinks demand for the Welcome Home Loan will grow quite a lot faster as more providers come in and people in the market get to know it.

Under Welcome Home Loan no deposit is needed if buying a house up to $150,000, and a 5% deposit is needed if buying a house more than $150,000, and the deposit can be gifted. The loan assists one or two borrowers earning up to $85,000 or three or more borrowers earning no more than $120,000.

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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

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