Long Term Home Loan Rates Falling
The past week has been a quiet one on the home loan front, with longer-term rates continuing a downward trend.
During the week seven lenders monitored by Good Returns lowered their three and four year rates, and two lenders, AXA and Resi, dropped all their fixed rates.
A key event during the week was that ANZ replaced its 18-month rate for a 20-month rate of 7.69% – slightly lower than either its one or two year rate.
While no reason was given for this change it is likely to have more to do with balancing up the duration of loans on its book, rather than for competitive reasons.What is the best deal for borrowers at the moment?
The consensus is that borrowing on a fixed term of around two years is the best option.
However there are some differences in opinion. ASB Bank and Westpac for instance are saying fixing for one to two years is the most appropriate action, while BNZ has a slightly longer time frame saying two to three years.
The common theme is that floating rates are not currently a great deal.
One of the main reasons is that they have been rising much more quickly than fixed rates, thanks to the Reserve Bank.
There has been little overall movement on rates currently offered.
One year fixed rates range from 7.60% to 8.58% with the main trading banks around the 7.80% mark. Five lenders (two of which are Canterbury-based – SMC and ABS Canterbury) are at 7.60% and NZ Mortgage Funds tops the table at 8.58%.
Three year rates are spread of a similar range with one lender on 7.60% and the highest in the market is GEM Home Loans at 8.35%.
FYI
Cheers
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
It is clear that will variable rates at 9% it does not suprise me that 3-5 year rates are hovering around.7.6-7.8%. It is clear the the NZ reserve bank get carried away with rates. Economists all agree (thats scary in itself) that rates are on the way down
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
but then
May 24 (Bloomberg) — New Zealand’s dollar rose amid expectations that Reserve Bank Governor Alan Bollard could increase interest rates amid signs that inflation pressures in the local economy are persisting.We will have to wait until June 9!
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
silly me
Who are the board members of the reserve bank
Economists. Come the revolution get rid of them you get rid of half the problem
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Just to update rates info.
The NZ reserve today kept the cash rate on hold and failed to rule out further increases.
At the same time the national bank of NZ reduced fixed rates across the board.
Cheers
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
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