Now that the main changes have passed through the banking system following the recent RBNZ OCR cut, now is the time to see where carded rates have settled.
And late on Friday, TSB Bank announced mortgage rate reductions.
Here is a list of the lowest carded rates as at 8am Monday, September 21, 2015.
Rates listed with 'special' conditions generally indicate that you will need at least 20% equity in the property secured. These rates apply for residential lending. Other rates or conditions may apply for investors.
Borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater. Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.
These rates are now the lowest retail rates ever offered in New Zealand in modern times for housing. Only the Government subsidised post-WWII 3% rate for returning servicemen from the then-State Advances Corporation have been lower.
See all banks advertised, or carded, residential mortgage rates here.
The new floating and fixed mortgage rates now compare across all main banks as follows:
below 80% LVR | Floating | 1 yr | 18mth | 2 yrs | 3 yrs | 5 yrs |
% | % | % | % | % | ||
5.99 | 4.49 | 5.09 | 4.65 | 5.25 | 5.49 | |
6.00 | 4.35 | 4.69 | 4.69 | 4.79 | 5.09 | |
5.89 | 4.35 | 4.69 | 5.19 | 5.65 | ||
5.90 | 4.49 | 4.59 | 4.85 | 5.35 | ||
6.00 | 4.99 | 5.19 | 4.69 | 5.19 | 5.65 | |
5.95 | 4.69 | 4.79 | 4.59 | 4.99 | 5.49 | |
6.35 | 4.49 | 4.49 | 4.49 | 5.29 | ||
|
5.89 | 4.69 | 4.69 | 4.69 | 4.99 | 5.59 |
5.99 | 4.55 | 4.69 | 4.49 | 4.79 | 5.50 |
Mortgage rates
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10 Comments
With floating rate kept high relative to the best fixed rates, this is applying pressure on borrowers to fix sooner rather than later.
Borrowers need to weigh up the potential benefit of waiting on a high floating rate with the prospect of sub-4 fixed rates within the next 4 months. Or jump from floating to fixed now and save 1.5% immediately, but with the risk of settling for 4.6 now instead of 3.99 later.
As NZ slides into recession and the global economy still struggles to recover from 2008, floating rates of 6% seem relatively high.
I have a loan coming off fixed with Westpac in a couple of weeks. Westpac is calling me almost daily to see if I want to refix. I've been offered 4.5% for 2 years and 4.7% for 3 years (I indicated this was the most likely term I'd be looking at). Just not sure whether to take it yet or see if rates come down a little more over the next few weeks. The rates are slightly higher than others I've seen quoted. This is one loan of several which are split over several terms. I guess the disadvantage of splitting loans with different maturity dates as recommended by many is that when one comes off its term then it effectively means you can't use leverage of a better rate from another bank since you'd have to break the other loans and pay break fees to move which would probably mean it wouldn't be worth it.
I'm wondering if the regular calls is trying to get me to commit before a lower rate is brought in. What do you think?
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