News of lower wholesale interest rates suggests we may be in for another round of super low home loan interest rates as early as next week. A news item on interest.co.nz provides examples of the correlation between swap rates and the mortgage rates with one example being SBS Bank’s one year rate as it was back in November 2015.
Tag Archives | mortgage rates
The time is right to fix loans to get the best interest rates on offer says an expert in the latest article on NZHerald. On PropertyTalk property investors say irrespective of market changes they use both fixed and floating loans across their portfolio to spread the risk.
Interest Rate Outlook – It is far too early to tell the impact the Reserve Bank’s lending restrictions have had on our market but our “gut” suggests that new lending and therefore activity has taken quite a hit in October, however it will take a full 6 months before the true impact is known.
Finding the deposit for a first home is a huge financial hurdle and around two thirds of first home buyers obtain a high loan-to-value ratio (LVR) loan. The LVR is simply the amount of lending compared to the value of the property, and an LVR of more than 80% is considered to be high.
Intentions by the Reserve Bank of New Zealand (RBNZ) to force banks to hold more capital for people with a less than 20 per cent deposit towards a mortgage will only hurt ordinary Kiwis.
The current crop of discounted rates and ‘cashback/tablet’ promotions has nothing to do with the International markets and all to do with the local Banks slugging it out for market share.