About half of all mortgages will reprice over the next six months, given the recent propensity for borrowers to fix for only six months at a time in the expectation of falling interest rates.
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As expected, the Reserve Bank cut its official cash rate (OCR) to 3.75% and signalled further cuts of up to 90 basis points this year but no cuts beyond that.
Annual consumer price inflation remains near the midpoint of the Monetary Policy Committee’s 1 to 3 percent target band. Firms’ inflation expectations are at target and core inflation continues to fall towards the target midpoint.
In a significant development aimed at providing a more holistic approach to financial services, Edge Mortgages has joined Link Advisory, which is part of Link Financial Group.
Heartland Group says the quality of its reverse mortgage and livestock portfolios remain strong and its recently acquired Australian bank is unaffected even as it announces $49.6 million of impairments for the six months ended Dec 31.
As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.
Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.
Although houses prices typically rise more than apartments over the long-term, the gap is not as wide as many people expect.
| SBS FirstHome Combo | 4.69 |
| ANZ Special | 5.29 |
| TSB Special | 5.35 |
| Unity First Home Buyer special | 5.49 |
| Heartland Bank - Online | 5.49 |
| ASB Bank | 5.49 |
| Westpac Special | 5.49 |
| Co-operative Bank - First Home Special | 5.49 |
| AIA - Go Home Loans | 5.49 |
| Kiwibank Special | 5.55 |
| ICBC | 5.55 |
| ANZ Special | 4.99 |
| AIA - Go Home Loans | 5.29 |
| Westpac Special | 5.29 |
| Kiwibank Special | 5.29 |
| TSB Special | 5.29 |
| ASB Bank | 5.29 |
| BNZ - Std | 5.29 |
| Heartland Bank - Online | 5.39 |
| Co-operative Bank - Owner Occ | 5.49 |
| SBS Bank Special | 5.49 |
| Unity | 5.49 |
| Westpac Special | 5.39 |
| BNZ - Classic | 5.59 |
| AIA - Go Home Loans | 5.79 |
| ICBC | 5.79 |
| SBS Bank Special | 5.79 |
| ASB Bank | 5.79 |
| BNZ - Std | 5.79 |
| Kainga Ora | 5.89 |
| Co-operative Bank - Owner Occ | 5.89 |
| Kiwibank Special | 5.89 |
| TSB Special | 5.89 |
| SBS FirstHome Combo | 4.94 |
| AIA - Back My Build | 4.94 |
| CFML 321 Loans | 5.80 |
| CFML Home Loans | 6.25 |
| Co-operative Bank - Owner Occ | 6.45 |
| Co-operative Bank - Standard | 6.45 |
| Kiwibank | 6.75 |
| Kiwibank - Offset | 6.75 |
| ANZ | 6.89 |
| ASB Bank | 6.89 |
| BNZ - Std | 6.94 |
FMT strengthens its presence in the Auckland market with a new business development manager.
Bruce Bodley-Davies has been appointed Investor Relations Manager at Alpha First.
Former head of Vega mortgages moves to adviser group.
With confidence in KiwiSaver underpinned by members’ ability to switch funds types and providers at a drop of hat, just how that will marry with long-term investment in potentially illiquid private assets remains in question.
The latest Morningstar KiwiSaver report shows the largest provider, ANZ with $22 billion under management, continues to be outperformed by most other providers in the core diversified fund categories.
There appears to be an appetite among KiwiSaver members to take home less pay now in order to boost their retirement savings, according to a survey by investment platform Sharesies
Rate conundrum lies ahead
It's interesting times with mortgage rates. About half of all mortgages will reprice over the next six months and advisers will have a key role to play in helping customers. What makes it more challenging is that most of the post OCR cuts yesterday were to floating rates with only a few moving fixed rates lower.
And to add to the challenge, two-year swap rate rose 2 basis points yesterday. The longer term rates are driven by what's happening in the United States and there are fears tariffs will fuel inflation.
Here are some interesting tables.
In the two year fixed rate you can see how many lenders changed rates and one has moved to a sub-5% level. See the table here
Meanwhile, this table shows how many lenders moved floating rates. The smaller banks have, in general, taken the more competitive positions. Have a look here.