For real mortgage costs, add to the ads
The interest rate banks advertise do not reflect the true cost of borrowing, writes Rob Stock.
Sunday, July 11th 2004, 9:43AM
by The Landlord
The real costs of mortgage borrowing have been thrown under the spotlight by the expansion of global banking researchers Cannex.New Zealand stands alone in the developed world in allowing banks and lenders to advertise only their headline borrowing rates.
But data from Cannex shows the "real" interest rates consumers pay - which include all the fees and charges lenders levy - are significantly higher than the figures quoted in advertising.
The research also reveals the banks that dominate in writing new mortgage business do not provide the best ongoing real rates to consumers.
Cannex, which launched its operation in New Zealand a year ago, has expanded its free mortgage ratings service at www.cannex.co.nz to cover more than just the big banks and now covers 27 lenders.
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