BNZ has reduced its fixed mortgage rates for all terms from three years to seven years.
These rate reductions apply to both its Standard product offering, its FlyBuys products, as well as its Global Plus offering.
Its new three year fixed rate has reduced by 30bps to 6.15% from 6.45%. But this rate is not as low as offered by ASB or Kiwibank who stand in the market with three year rates of 6.10%
Its new four year fixed rate is 6.50%, a reduction of 35bps from 6.85%, and that takes the BNZ offering to the same level for this term as ASB and Kiwibank.
Its new five year fixed rate is now 6.90%, also a reduction of 35bps from 7.25%, and also at the same level as ASB and Kiwibank.
BNZ is the only bank to offer a seven year fixed-rate and this rate has been reduced by 35bps as well, going down to 7.55% from 7.90%.
Its variable rates, including its Total Money rate, and its fixed rates for terms 6 months to two years are unchanged in this latest round of reductions.
You can find all mortgage rates, for both banks and non-bank offerers, on our comprehensive mortgage rate table page here »
Over the last two plus weeks, all banks have repositioned their fixed rates lower, especially for their longer fixed term offerings. Those banks who were among the first to move - ANZ-National and Westpac - now find themselves with rates higher than those who moved more recently.
Competition by banks for mortgage business is strong especially as total market growth is anemic. There has been a noticeable move to attract first-home buyers with very high LVR loans. Read more about this in Gareth Vaughan's story here »
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18 Comments
Notice if you will that no reason is given for the cheaper addictive drugs...but given the evidence of the rising LVR ratios in other news, it is safe to say the RBNZ has received a nod and a wink from Bill English to go for more PORKING of the property game....he has perhaps finally realised the commodities export bonanza is ebbing away....
Meanwhile the bulk of Kiwi peasants are heading to the renting lifetyle...they can see the intention of govt is to establish a seriously dominant landlording sector fed on subsidies using borrowed loot...why fight it...either join up or take the low wage supplement to hand it on to the landlords who pass it to the banks which loaned it to the govt....what a game.
One day very soon, with the social networking available, the bulk of Kiwi will decide they have had enough of the game...they will stop spending...cutting off the gst flow....turn off the power or disconnect...the landlines went long ago...they will move swiftly to the bartering markets safe from the IRD's grabbing fingers. The more who make the change...the greater to reason to do so for others. Why are YOU waiting. As a young Kiwi, YOU are being set up for a lifetime of misery as a serf to a bank and worker for the IRD...you are a sucker to buy into it unless you have a silver spoon in your gob.
Interesting piece on estimating the positions of US presidents......Obama is the most moderate / centralist president for a long time but republican Presidents are far more extreme....and seem to be as far out as possible....
The Greek situation...in a short few paras....
http://krugman.blogs.nytimes.com/2012/02/06/the-greek-vise/
"Can I say that this looks basically inconceivable?
And here’s the thing: when this started, Greece was running a large primary deficit — which meant that even if it repudiated all its debt, it would still have been forced to make a major fiscal contraction. This is no longer true. So we’re now looking at a scenario in which Greece is forced into killing levels of austerity to pay its foreign creditors, with no real light at the end of the tunnel.
This is just not going to work."
So reduce Govn spending to 68% of its spending in 2009....
So, "inconceivable?" too true.....
regards
Inotice that in the u.s.a you can fix your mortgage rates for 20 to 30 years.
If we could do that in nz would that keep house rates down.
I recall my parents having a mortgage of 3% for 25 years .
we sold the house in 2000 for 130k and it has since sold for 310k in 2010 but prior to 1990 the value of the house went nowhere.
Another good piece on why prices are not rising,
"Procter & Gamble Co., <snip> The world’s largest consumer-products company rolled back prices after an 8 percent increase lost the firm 7 percentage points of market share."
http://www.bloomberg.com/news/2012-02-06/huggies-price-cut-shows-why-bo…
So will rents (for instance) rise? or will ppl shop somewhere else? to me rent is flexible....
Also,
"Inflation as measured by the personal consumption expenditures index, excluding food and fuel, the measure used by the Fed for its forecasts, rose 1.8 percent in the fourth quarter from a year earlier. That’s down from more than 2.5 percent as recently as 2008."
Suggesting 0.7% dis-inflation...
regards
People are not as stupid as some may think. Sure interest rates are too low but look at the upside. We are earning relatively valuable dollars in NZ and so foreign assets are relatively cheaper. Keep only enough in the bank to pay bills etc. Savings elsewhere.
They tell us savings rates are low....how would they know....who is going to park cash anywhere official these days?
Real money is simply increasingly going into hiding (greshams law). That is a good thing. Governments are increasingly printing each other paper and swapping it around.....fine by me. I will use it to buy real "stuff".
Gold is being re monetized and there is nothing that can be done to stop it. Pay bills with paper, save in gold.
So fixed rates are coming down. But nothing happens to the floating rate. What does this mean.
1. The banks are ripping us off again with the usual smoke and mirrors. Well highly likely and on past performance they will if they can.
2. OR. The fundamentals are driving it. And if it progresses - is it possible that fixed rates will become lower than the floating. That would be a different ball game.
So if the Aussie banks are raising floating rates in Aus due to funding cost increases - are they about to do the same here in NZ?
Here's a puzzling question: If you can fix your mortgage for 30 years in the USA, does that mean they don't charge break fees (or not to the same punitive amount as here in NZ), as many home-owners will sell/shift house/shift states during the fixed period of 15 - 30 years.
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