HSBC cuts three home loan rate offers with some new 3.95% 'specials', restoring its market-leading positions after others had moved to challenge it

Problem? If it's a problem for you bw, feel free to pay the banks 5% or 10%, I'm sure they won't mind

The boomers love to go on about 20% interest rates back in the day. They might describe these rates are exorbitant or usury. But house prices were a fraction of what they are now.

But it's no different now? The banks are still taking a huge chunk of people's incomes. 4% on a house 10x your income is the same as 20% interest on a house 2x your income. But at least at 20% interest it was much much easier to save for a house.

Don't be such a drag bw, life is wonderful!

"Low rates mean lending is tight "

You will need to explain that to me please.

Very well said HG

"South Canterbury FInance". Furthermore, the "idiots" you refer to included many wealthy South Islanders. One of the reasons why SCF was bailed out was the negative effects it may have had on the rural economies. Now if you compare that with the "idiots" who invested in Blue Chip (safe as houses), the profile of that investor was a little different. Urban and probably less influential on their respective local economies.

Easy to see why SCF investors received preferential treatment. Not saying that I agree with it, but that's the way politics works.

For those who are waiting for a crash before they strike best of luck to you. Just don't hate on those gobbling up houses in the current market.

OK, I'll remove myself from the market and let you gobble up as many houses as you please. Be my guest.

HeavyG and Yvil. I would venture that interest rates can't rise as we are at affordibility limits. Looking at it that way and knowing that we need an ever increasing money supply in our economy then rates can only go down. Logic applies that they can't go down forever and when they can't go down anymore we have a crash. It's just the path we are on (if there's no external shock which hastens a correction/crash).

HG, I’m not hating on people buying at this stage of a bubble, just trying to flag it as very likely that it’s coming to an end, if people don’t know yet. The banks aren’t going to say so, and not even the RBNZ until it’s too late I’d say. It’s more inexperienced first home buyers I’m thinking of. If experienced investors are buying into the later stages of a bubble, good luck to them. Just know that it’s been similar in Sydney and Melbourne and some parts of Sydney are now down over -20% and no sign of a turnaround. Those who bought in the past 18 months or so are well into negativity equity already.

AMI isnt really in the same leauge as CF. They had quite reasonable models and simply the fault was not known about.

Again a one dimensional argument that interest rates are the only factor which affect peoples willingness or ability to borrow (you could almost argue it's back and white thinking). .

Depends what rate banks are stress testing new buyers at, surely.

Banks may also be competing for the best looking current owners, rather than just new buyers.

HeavyG, you couldn't get everyone on here to agree the sky is blue. The DGMs can only see grey clouds for starters....with interest rates this low, home owners have never had it better.

Credit expansion forever. Basically many countries are broke, they just keep kicking the can down the road and carry on as normal.I don't see anything changing and by the time it does, there will be bigger things to worry about anyway. Nobody really knows how the effects of climate change is going to pan out. This only needs to turn into some irreversible exponential change......