Dips lower by BNZ and the Cooperative Bank come as real estate transaction weakness intensifies competition while the loan rollover market stays healthy

BNZ has matched ANZ and Kiwibank with a two year fixed home loan rate of 4.65%.

This involves a -4 bps trim from their previous Classic special.

This is the lowest rate for that term in the market, except for the 4.29% offer from HSBC Premier.

And the Co-operative Bank has cut -6 bps from its one year owner-occupied fixed mortgage rate, taking it down to 4.49%. However, this new rate is not market leading.

These changes reflect a narrowing of the range between mortgage rate offers. Changes are generally minor even if they are in a downward direction.

The latest mortgage market activity data shows a very subdued environment. New lending is down in October by -14.7% from the same month a year ago with lending to investors down -17%. First home buyers suffered less but it is still down -6.5% year-on-year.

But even if new real estate transactions are coming in lower, the rollover market is still healthy. 60.8% of all housing lending to owner-occupiers will fall due for an interest rate review within the next year. That is $2.5 bln more at $101.1 bln than was due at the start of the year. For investors, it is 62.2% of their lending that is due for an interest rate review within the year.

In wholesale markets, swap rates are basically unchanged from the low levels they have been in the past three months.

See all banks' carded, or advertised, home loan interest rates here.

Here is the full snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at November 24, 2017 % % % % % % %
               
4.99 4.45 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.39 4.60 4.69 4.99 5.49 5.69
5.35 4.59 5.05 4.65 4.99 5.89 6.09
Kiwibank 4.99 4.45   4.65 4.99 5.65 5.69
Westpac 5.25 4.59 5.15 4.69 4.94 5.89 5.59
               
4.80 4.49 4.69 4.69 4.99 5.55 5.75
HSBC 4.85 4.19 4.19 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.69 4.69 4.99 5.49 5.69
4.85 4.55 4.65 4.69 4.79 5.55 5.69

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

And TSB still has a ten year fixed rate of 6.20%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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29 Comments

Banks are getting desperate for business ! 200k drop in Auckland home prices, i guess they have to offer something. But who will buy in this market ? It does not matter now what deal they offer, its going to crash another 200k over the next 10 months at least. No mortgage savings will off set this.

The Crash Is Coming ( or is it already here ? )

The rates keep going down but they still need to go lower to match the Australians low rates.

LVR is being lowered so things are looking good for the next cycle and maybe more rental properties available to help the rental shortage for families is prudent.

I have 3 mortgages coming up for renewal in December, any rates anyone has been offered and is willing to share ? (I prefer short term fixed)

Mortgages are good debt to have unfortunately people do not understand the power of using the banks money to enable a reasonable future.

The greater the mortgage the better off you are and at the same time you are helping families to get a roof over their heads.

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11

There is no Good Debt or Bad Debt, it's just...DEBT! It's a commitment to be repaid. Many don't understand that. It's not The Debt that's good or bad, it's what's done with it, and non-productive residential housing speculation is not a good National Use of debt.....

Sorry bw but that is very untrue.
Bad debt is debt for any consumer goods, all the stuff that devalues over time, clothes etc, car finance is a prime example, credit cards that don't get repaid in full every month etc
Good debt exists, it's debt that allows people to make money. Pretty much every single business that exists had a some point some debt to get started, without that debt pretty much no one would have a job... Real Estate debt is generally also good debt because 1) in the long term R E values go up and 2) the mortgage goes down and is paid for by the lessee or tenant.
Unfortunately I was tought that same false mantra, that all debt is bad, by my parents as well. It's extremely hard to get ahead in life as long as one believes this to be true.

Housing....is a Consumption item.....
I repeat. Debt is neither Good or Bad. It's what the debt is used for that's good or bad.

Sure, same can be said about money, it's neither good nor bad, it's what people make with it

....and what is money? Debt!
It is a 'promise to pay ' in goods or kind at some future time.

" it's debt that allows people to make money..."

A perverse statement but the end result has been something akin to this....
Central banks have devalued previous debts (by adding to the money supply at a far faster rate than real growth) ... so they have destroyed the value of money (which is great for those who took on debt and bad for those who tried to save)
So the ultimate lesson ... ALL debt is good debt, all consumption deferred is bad.

Which is why the system is screwed.

Yeah id say thats pretty much as accurate as anyone needs to be. Tricky part is timing.

tothepoint - rober redford ,stop with the nice guy act. no one is buying it ! and no you cant count your other split personalities.

Offered 4.25, 4.35 & 4.69 for 1, 2 and 3 year fixed respectively, earlier this week

Thanks, BT (funny name), do you mind sharing which bank it is with ?

ANZ

Just got offered: 4.24 6 mths, 4.20 1 yr, 4.40 18 mths, 4.45 2 yrs, 4.79 3 yrs
Laminar says he got 3.80% for 2 years with HSBC, that's incredibly low

3.8% from HSBC 2 year fix

That's impressive. Do you find their lending criteria similar to mainstream banks ?
How long have you been with them and how do you find them to deal with ?

Debt is fine if you have the income to support it. If that scenario changes then debt can quickly become 'bad'. Stating the obvious really..

Debt is fine, as long as another mug is paying it off for you.

Some mugs are taxpayers. Some are renters, some are working the system.

There is an awful lot of debt around. Some are so stupid, they cannot see it. But they can feel it when it pinches, or someone pinches it, when it hits rock bottom.

When debt used to matter little, there was not a lot about. Now debt matters a lot, but there is little money about.

When you can compare ones debt to society to Peter robbing Paul, but legally skewed to stiff them with real debt, but huge interest in Payday loans, then we are really screwed...Legally, Morally and...often physically.

Some people want it now, some people cannot wait. Some people work for a lifetime paying down debt, the fact is Banks create it, want you to continue it, want at least 7 silly sods to borrow it and keep on working...till they drop, or see the light.

Or even do a Reverse Mortgage, at an even greater interest rate...than when they paid it orf...

Silly eh.....Mort means death, gage is is a Pledge.....Till death us do part.?..Maybe ...never.

Putting ones life on the line.....card, whatever....tis all Debt.

The word mortgage is derived from a "Law French" term used by English lawyers in the Middle Ages meaning "death pledge", and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.

So keep working, keep borrowing....and Thanks.

You have to love your mortgage. Make your mortgage grow so you are in control and the bank becomes your buddy instead of your boss.

I basically got off the couch a few years ago and now Im in debt up to my eyeballs.

Sounds like the Donald Trump method. Owe so much the banks have to bail you out or lose big.

Je ne savais pas que tu parlais français Alter Ego, peut-êtrre sommes-nous de la même terre ?

Je parle comme un natif de Tombouctou...

Hahaha

One thing better than paying your own mortgage is getting someone else to do it.

rbnz has relaxed lvr restrictions albeit very slightly. banks reducing interest rates. both are stimulatory. someone/somebody must be getting nervous?

People are paying down their mortgages and the banks have too much money, demand has gone down, so the price of money, interest rates, are going down

PKchew, I don't think that's how the money supply works. When banks lend out mortgages they create money and add money to the supply. But because bank lending is currently shrinking and all indicators suggest the market will continue to soften, or at least turn over stay low, this will mean less money in the system. The banks will still want to lend obviously but in a changing and riskier market, they will only offer good rates to the safer customers with higher deposits and beautiful credit history. So some people might be offered tempting rates, but that certainly doesn't mean there is lots of money sloshing about. Also household debt to income is still sky high. There has been no significant paying down of debt yet.