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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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Just one fall in a week of rises

Weekly home loan report: Fixed rates continued to rise in the past week as more economists forecast a Reserve Bank rate hike in a couple of weeks.

Tuesday, October 11th 2005, 7:16AM

by Janine Ogier

More lenders increased rates across the fixed rate market last week, with one- and two-year rates again recording the most changes.

With the financial markets pricing in a 25-basis-point rate hike on October 27 and more economists backing that sentiment, a Reserve Bank rate increase will be no surprise.

Bank of New Zealand chief economist Tony Alexander advises borrowers to get a two- to three-year fixed rate, or even a four-year rate.

“The drift in all these rates will be up and there is nothing at this stage which would allow one to take a reasonable punt on when the next cyclical low in fixed rates will be,” he says.

BNZ unveiled its “we’ll beat it” spring campaign recently and pledged to better any fixed home loan rate from a big bank.

It’s hoping to match the stellar mortgage business it attracted with its aggressive campaign last year.

Deutsche Bank this week changed its view on monetary policy. “With market pricing now, finally, endorsing the RBNZ’s inflation concerns – a notable and enlightening change of view in itself – we look for the RBNZ to implement a 25-basis-point hike in the official cash rate at the coming interim review in late October and possibly a further 25-basis-point hike at the December monetary policy statement,” senior economist Darren Gibbs says.

The quarterly survey of business opinion is released today and will be key in the Reserve Bank’s decision-making process.

“A weak QSBO outturn may see a re-evaluation by the market of the odds that further policy tightening is imminent,” Westpac economists say.

“We see the survey as the main make-or-break of the likelihood of the RBNZ acting this month.”

In mortgage news, many lenders altered fixed rates upward in the past week.

One-year rates now range from the 7.60% offered by Southern Cross to 8.47% from New Zealand Mortgage Loans.

Ten lenders announced fixed rate increases.

Two-year rates now vary from Housing Corporation’s 7.55% to the 8.75% offered by Headstart. There were 11 rises.

In the middle part of the market, three-year rates range from the 7.40% offered by PSIS to Headstart’s 8.55% and eight lenders announced increases.

Seven lenders raised four-year rates and they now vary from 7.35% at PSIS to 8.05% at New Zealand Mortgage Funds.

The sole decrease of the week was in the five-year rates, where ASB cut its rate to 7.40% from 7.50%. This is in marked contrast to Kiwibank, which put its five-year rate up 25 basis points to 7.40%. It was only six weeks ago that it was offering this term at 6.99%.

The five-year rates now begin at the 7.30% offered by BankDirect to Gem Home Loans’ 8.00%. Seven lenders raised this rate.

« House price inflation acceleratesBanks better at keeping customers »

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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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