ANZ, National and ASB have further trimmed their 2 year and 19 18 month mortgage rates in another attempt to heat up demand for home loans in an otherwise moribund housing market.
Signs have emerged in recent weeks of a slight pickup in mortgage approvals as the traditional spring surge in the housing market finally heats up demand. There have been anecdotal reports of improving auction results in some parts of Auckland in the last week.
ANZ has cut its 18 month mortgage rate by 10 basis points to 6.55% and has cut its two year rate by 4 basis points to 6.65%.
National Bank, which is owned by ANZ, cut its 18 month rate by 5 basis points to 6.55% and cut its two year rate by 4 basis points to 6.65%.
The two banks combined have the biggest share of the banking market.
Their rates are now back in line or slightly below the other big three banks (BNZ, Westpac and ASB), but still slightly above Kiwibank.
See all bank mortgage rates here.
Earlier on Friday AMP Home Loans, which is owned by Kiwibank, cut its 2 year rate by 10 basis points to 6.59%.
Later on Friday Sovereign's Home Loan division, which is owned by ASB, cut its 18 month mortgage rate by 5 basis points to 6.70% and its 2 year rate by 10 basis points to 6.75%.
ASB then announced it had cut its 2 year rate to 6.6% from 6.7% and cut its 18 month to 6.55% from 6.6%.
Wholesale swap rates have eased lower in recent weeks. The two year swap rate has fallen from 3.62% on November 5 to 3.52% today. See the interactive swaps rate chart here.
This followed comments on November 10 by Reserve Bank Governor Alan Bollard that markets may have overestimated the speed of New Zealand's economic recovery and the likelihood of early and fast rises in the Official Cash Rate.
See more here on Bollard's comments after the Financial Stability Report.
See our interactive average mortgage rates chart here.
8 Comments
Starting to get interesting now. ASB where is your 2yr <6.5%??
interesting how their reductions are so tiny, in comparison when they raise the rates
No bugger wants to borrow our credit...."pleeease come on in and borrow some credit.....pleeeeease help us help you get into debt"..oops I mean into a home of your own...pleeeease don't let our profit line shrivel with the bubble....
Now can you peasants see what you can achieve when you kiss goodbye to mortgages....look at the bank behaviour....the free offers will come next along with new car prizes and plastic toys for the sprogs.....don't be fooled...the advertising and poodle media are out to trap you into a mortgage and then the door will slam shut....followed by the rising rates and you will know fear as the total loss of all your equity draws near...............sucker.
Screw the banks.....destroy their bubble....drive down prices.....enjoy your freedom from debt.
Yawn....
Poor little Alen1...up to her gills in property debt and so desperately pretending it's still 2006.
Just try and accept the fact that your property bubble is gone now.
The least stupid real estate hacks have moved on to bigger and better things (Macdonalds, the Warehouse, etc)...it's definitely time for you to finally do the same.
Yawn...
If you'd prefer a slightly more upmarket new career, you could try Starbucks.
me too - yawn. alen, you need to lighten up a little - PI bashing is so yesterday. Go outside and play!
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