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Mortgages

Mortgage Rates Daily Commentary
Monday 25 November 2024  Add your comment
All eyes on interest rates for the next two years

Aside from the expected RBNZ 0.50% OCR drop on Wednesday, economists are expecting a thorough update of where it sees interest rates going over the next two years. [READ ON]

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Borrowers go long

More mortgage customers are opting for longer fixed terms, HSBC says.

Tuesday, June 4th 2013, 6:35AM 1 Comment

 

Over the past six months, the portion of the bank’s mortgage lending on two- and three-year fixed rates has increased by more than 20 per cent.

It’s a symptom of a move that is happening more widely.

The Reserve Bank reports that nationwide, the amount of lending on fixed rates is drawing near the amount floating for the first time in years. Most fixed mortgages are still on terms of one year or less.

But year-on-year, more borrowers are opting for longer terms.

In April 2011, there was $6.76 billion fixed on terms of more than two and less than three years. That had fallen to $5.7 billion in April 2012 but is now back up to $7.08 billion.

In the three to four-year loan space,  in April 2012 there was just $912 million but there is now almost $1.5 billion.

HSBC’s head of retail banking and wealth management, John Barclay, said: “We are seeing a gradual switch from floating to fixed rates. This is not a case of all customers switching their loans in a mad rush, but rather them making strategic changes to the mix of their home loan structures.”

« Mortgage lending picks up paceNew bank tools possibly days away: BNZ »

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Comments from our readers

On 5 June 2013 at 12:52 pm Dinsdale said:
November 2012. Remortgaged five properties with a 3-year fixed rate @5.25%

May 2013. Purchased a property with a 2-year fixed rate mortgage @ 4.85%. Same bank.

Any mortgage for 2+ years below 5% makes sense, especially as it usually comes with some form of cash incentive.

The question is how long will low rates be around? The recent downward movement in the $NZ gives some scope for an OCR hike in mid-2014. But with European and American rates in the doldrums and shed loads of yen looking for a safe, interest-bearing home my pick is for any upward increase to be from early 2015.

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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 7.65 5.99 5.75 5.69
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 ▼8.60 6.75 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 7.75 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 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 8.69 6.49 6.49 6.49
TSB Special 7.89 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 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 6.02 5.79 5.69

Last updated: 20 November 2024 9:45am

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