tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
RBNZ keeps the cash rate unchanged; but expects further cuts READ ON Dismiss
Last Article Uploaded: Wednesday, July 9th, 6:40PM

Mortgages

Mortgage Rates Daily Commentary
Wednesday 9 July 2025  Add your comment
Mortgage rates may have bottomed already

While there’s debate within the Reserve Bank’s monetary policy committee about where interest rates are headed, mortgage rates have either bottomed already or have only a little further to fall, says Kiwibank chief economist Jarrod Kerr.  [READ ON]

rss
Latest Headlines

Bank five-year rates fall

Mortgage rates are being pushed and pulled in all directions as lenders grapple with conflicting pressures in their businesses.

Thursday, January 24th 2008, 6:55AM
The sudden and unexpected 0.75% cut in United States interest rates this week is a new factor for them to consider. In New Zealand, the Reserve Bank will announce its first rate decision of the New Year today.

Overall, the trend emerging is that five year rates from banks seem to be downwards, while non-bank lenders are still raising long term rates. Meanwhile there is pressure across the board on shorter term rates. Fixed rates are now breaking the 10% barrier that was breached by floating rates several months ago.

Lenders blame the conditions in international credit markets - a tightening in the availability of funds - for the increases in the cost of shorter term rates. New Zealand's official rate, currently at 8.25% and expected to remain at that level for a while, also influences shorter term rates. Economists are not expecting the official Cash Rate here to fall until later this year, at the earliest. However the steep cut in US rates adds new uncertainty to the outlook on rates generally; the New Zealand dollar bounced against the US dollar after the overnight rate cut and renewed strength for the local currency would put exporters under pressure.

Economists and mortgage brokers have been recommending that borrowers opt for two and three year rates in the expectation that when these loans mature, cheaper borrowing will be available. However, there is also a view that borrowers with larger debts should spread their borrowing across a variety of terms.

Competition between lenders is still working to the advantage of borrowers according to brokers. The general trend in advertised rates has been upwards but lenders are still willing to negotiate over rates. Lending volumes are down because the heat has been taken out of the housing market and banks are under pressure to win business.

The current market could be a test for ability of smaller lenders to raise wholesale mortgage funds at competitive rates. The cuts in five-year loan rates are being lead by Kiwibank and Westpac yet there have been increases over that term from several smaller lenders.

« Rate rise unlikely this weekThe Official Cash Rate (OCR) will remain unchanged at 8.25%. »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.44 - - -
AIA - Go Home Loans 6.54 4.89 4.95 5.09
ANZ 6.49 5.55 5.55 5.69
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 4.95 4.95 5.09
ASB Bank 6.44 4.89 4.95 5.09
ASB Better Homes Top Up - - - 1.00
Avanti Finance - Near Prime 6.90 - - -
Avanti Finance - Specialised 8.34 - - -
Basecorp Finance ▼7.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 5.99 5.69 5.69
BNZ - Mortgage One 6.54 - - -
BNZ - Rapid Repay 6.54 - - -
BNZ - Std 6.44 4.89 4.95 5.09
BNZ - TotalMoney 6.54 - - -
CFML 321 Loans 4.99 - - -
CFML Home Loans 6.70 - - -
CFML Prime Loans 7.20 - - -
CFML Standard Loans 7.99 - - -
China Construction Bank 6.44 4.85 4.95 4.95
China Construction Bank Special 6.44 5.85 5.95 5.95
Lender Flt 1yr 2yr 3yr
Co-operative Bank - First Home Special - 4.85 - -
Co-operative Bank - Owner Occ 5.95 4.95 4.99 5.25
Co-operative Bank - Standard 5.95 5.45 5.49 5.75
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.29 5.19 -
First Credit Union Standard 6.94 5.79 5.49 -
Heartland Bank - Online 5.99 5.89 - -
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 7.45 5.90 5.80 -
ICBC 6.50 4.85 4.95 5.05
Kainga Ora 6.44 4.89 4.95 5.09
Lender Flt 1yr 2yr 3yr
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.35 5.79 5.85 5.95
Kiwibank - Offset 6.35 - - -
Kiwibank Special - 4.89 4.95 5.15
Liberty 6.90 6.80 6.50 6.45
Nelson Building Society 6.94 4.99 4.93 -
Pepper Money Near Prime 6.85 - - -
Pepper Money Prime 6.29 - - -
Pepper Money Specialist 8.30 - - -
SBS Bank 6.49 5.55 5.55 5.75
SBS Bank Special - 4.95 4.95 5.15
Lender Flt 1yr 2yr 3yr
SBS Construction lending for FHB 3.94 - - -
SBS FirstHome Combo - 4.29 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 8.64 - - -
TSB Bank 7.19 5.69 5.75 6.09
TSB Special 6.39 4.89 4.95 5.29
Unity First Home Buyer special - 4.29 - -
Unity Special 6.64 4.99 4.99 -
Unity Standard 6.64 5.79 5.79 -
Wairarapa Building Society 6.75 5.09 4.95 -
Westpac 6.59 5.49 5.55 5.59
Lender Flt 1yr 2yr 3yr
Westpac Choices Everyday 6.69 - - -
Westpac Offset 6.59 - - -
Westpac Special - 4.89 4.95 4.99
Median 6.56 4.99 4.99 5.15

Last updated: 9 July 2025 3:05pm

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com