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

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, November 3rd, 1:12PM

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]

rss
Latest Headlines

Sovereign takes more aggressive position

Sovereign’s decision to cut all its fixed rates by 15 basis points this week was a sign that it was taking a more competitive position in the market.

Friday, May 6th 2011, 7:02AM 2 Comments

Sovereign, which is essentially owned by ASB Bank, moves its rates at the same time and by the same amount as the bank. This week though it was only Sovereign which moved.

David Drillien says that Sovereign is taking a more competitive position in the market and this pricing change is one visible sign of that move.

The company's strategy is to use brokers to sell its home loans, but home loan sales are also used to sell life insurance.

Brokers who sold a certain amount of life insurance previously could offer home loan rates 15 basis points less than Sovereign's carded rate.

Drillien says the company is doing away with that position as most brokers qualified for the discounted rate, it was adding an extra layer of complexity to its offering, and it wasn't fair that the customers could potentially miss out on the better rate due to which broker they used.

Besides the rate cut Sovereign is loosening up its lending criteria and will be offering loans up to 95% of a property's valuation.

Drillien says there are some other initiatives being worked on with its home loan offering at the moment.

« Floating rates growing in popularityFloating rate predictions »

Special Offers

Comments from our readers

On 10 May 2011 at 12:41 pm Darcy said:
This move, combined with Kiwibank moving into broker space (one baby step at a time), is a real threat to the main lenders now - will they begin to pay trail commission again? Is BNZ in danger of losing even more market share now that Kiwibank are using brokers?
On 11 May 2011 at 1:26 pm Simon said:
Darcy, Kiwibank charge the highest low equity premiums in the market. Any half intelligent broker knows this so unless the clients happen to have 20% saved they aren’t going to be recommending Kiwibank for a home loan anytime soon. Kiwibank are also charging their home loan customers fees to hold interest rates in advance of loan maturity (none of the other banks do this) so really their only value proposition is their New Zealand ownership. My experience with clients is that their number one priority is actually getting a good deal.

Kiwibank are now losing deals to other banks that they were automatically writing 2-3 years ago when the other lenders limited customers to 80% borrowing only. With ASB/Sovereign, Westpac and yes even our friends at BNZ lending back up to 95% the fact that clients can save thousands with these lenders will see Kiwibank continue to lose market share.

I think most brokers would back me when I say that it is BNZ that are the most aggressive on market share at present as they seem to be able to write deals that the other banks have no appetite for. I’d add that some of these deals that BNZ are writing they probably shouldn’t be!
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 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

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