Banks fight for business on both rate and easier terms

Kiwibank eases home loan conditions by dropping its LVR constraint for its lowest rates

16th Oct 12, 4:59pm by David Chaston

Kiwibank have withdrawn the 30% equity condition from their three 4.99% specials.

That condition applied to their 6 month, 1 year and 2 year fixed mortgage rates, each of which is currently priced at 4.99%.

They continue to deem these as ‘special’ and ‘limited time’ rates.

This easing of loan conditions comes as the traditional 'Spring' home loan market competition heats up in an unusual way this year - prices are rising, but sales volumes are lagging because of a significant shortgage of listings.

Banks are competing hard for business in a slow growing market.

You can find all current mortgage rate offers here »

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Source: interest.co.nz

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6 Comments

by Henry_Tull | 16th Oct 12, 6:28pm 1350365280

And at the home of the Oz banks:

Tighter lending criteria and persistently high house prices are holding back a stronger recovery in the housing market, while more houses are worth less than their mortgages, a new report says.

The JPMorgan Australian mortgage industry report shows that nearly 70 per cent of home refinance loan applications are being declined on the basis of insufficient income or inadequate loan-to-value ratios, as regulators push for stricter standards from lenders.

"We are tipping a barrier in terms of people's ability to refinance because of income and LVR issues," said Martin North, principal of Digital Finance Analytics, who contributed to the report.

He said that in earlier years the most common reason for a refusal was a change in the personal circumstances of the borrower.

by Stephen Hulme | 16th Oct 12, 9:06pm 1350374815

I am being paid 4.75 % for one year depo as of today from a NZ major - what does that tell yah! - flow counts- the rest is bollocks

by SK | 17th Oct 12, 8:03am 1350414185

It tells you thats a rubbish return?

by Stephen Hulme | 17th Oct 12, 8:55am 1350417302

Yes, I could not agree more - if UK, US, Japan and EU citizens can hardly repay zero cost of finance, what chance does a Kiwi have? - borrower default is staring me in the face - but cannot employ money elsewhere - certainly cannot risk having funds/securities hijacked in the UK & US by publicly authorised rehypothecation scams- local and central NZ government are forever unexpectedly bailing out the entitled.

by Stephen Hulme | 17th Oct 12, 9:15am 1350418539

Nonetheless, I remain hopeful the ravages of falling interest rate deflation maybe coming to an end. Read more

by idlebumski | 17th Oct 12, 10:52am 1350424329

"70% of home refinance apps are being declined..."

A timely reminder that the mortgage machine is not friendly and that you are there to primarily help them, which is no guarantee of reciprocity.