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Mortgage Rates Commentary

Another bank cuts rates

Wednesday 25th of January 2012

SBS and its fully-owned subsidiary HBS have cut some of their shorter term fixed rates ahead of tomorrow's OCR announcement.

The cuts are slim, 10 points off the six month rate and 5 points off the one year rate, but it is the second bank to lower rates in the past week.

ANZ and the National Bank cut their rates earlier. As reported here the cuts were bigger and across a wider range of terms than SBS.

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Latest Comments
Advisers embrace Westpac after trail commissions removed
Doesn't this result call into question the criticism from certain quarters that Mortgage Advisers are driven predominantly by commission considerations?
1 hour ago The Laird
FMA wants clearer fees
@first time caller - I can see the complexity you highlight, but as above, investors should be able to see what they are paying without having to reference multiple documents. Investment admin can track and report deductions for tax, withdrawals, fees et al, would be /should be straightforward to aggregate advice fees into costs at member level... at least I hope so.
1 day ago Goldcard
FMA wants clearer fees
@goldcard - how would you propose that a fund manager calculates the TER to include adviser fees given not all clients pay them and different advisers charge different fees, not to mention some advisors charge different fees to different clients? The advice fee gets disclosed in the adviser's disclosure statement and the statement of advice, so the client can add that to the published TER of the fund they are invested in to see how much they are paying overall.
1 day ago First time caller
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Schedule 4 of the FMCA regs 2014, particularly clauses 2(1) and 53(3) provide the basis for excluding individually charged advice fees from the statutory TER. This was introduced with the best of intentions, but now it is little more than an invisibility cloak for deductions from member accounts.
2 days ago Goldcard
Ideas for reforming KiwiSaver
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