Give us a call: (09) 486 4719
btn book free consultation

Blog

Email me when new posts are made to this blog

Interest Rate Update - October 2019

October 22nd, 2019.

It has been another month of rate competition with arguably the largest attention going to Kiwisaver provider Simplicity’s entry into the mortgage industry with a market leading 2.95% rate. What was of particular interest with this was that unlike other leading rates which were fixed rates, Simplicity has an offer which is based on a floating rate. With an initial plan of $50m to be lent over the first 6 months it remains to be seen if this will expand outside of being a clever marketing ploy as this amount won’t even register considering the actual size of the New Zealand mortgage market.

Outside of this we have seen most other banks interest rate offerings continuing to trend downwards with SBS coming to the party at the time of writing with a competitive 2 year rate of 3.39% and also offering a cash back incentive at the same time.

This point is worth noting as it is not just the rate that borrowers should be looking at when considering pricing although in many cases a cheaper rate will be better over time than an initial cash injection up front.

Overall when looking at the Australian backed banks and the New Zealand banks this isn’t much in it and so other factors such as facility types and the ability to structure mortgages in particular ways should be taken into consideration. Some lenders are also looking to price investment margins on top of quoted rates for property investment loans although this appears to be able to be negotiated on in many cases at present.

The Chinese banks again are leading the way with Bank of China, ICBC and China Construction Bank’s fixed rates only have a few basis points between them.

On another note it will be interesting to see what eventuates out of both the next Official Cash Rate review (on the 13th of November) and also two weeks later (on the 27th of November) when the Reserve Bank releases its Half yearly Financial Stability Report. The key point to watch out for will be if the Reserve Bank looks to relax the current loan to vale rule restrictions further as they have done the last two years through the same report. There is a chance they may decide to hold off a further OCR decrease until next year if their intention is to relax with the concern being that both lower deposit criteria and even lower interest rate availability may result in the property market being stimulated more than they are comfortable with.

On the flipside however the probability is that with continued low business confidence and overall growth that they will look to reduce a further 0.25% in the November review meaning we may see even lower rates going into the Christmas season.

21 Comments

Digital_work says ...
I wrote about a similar issue, I give you the link to my site. Pakistani Call Girls


Digital_work says ...
I wrote about a similar issue, I give you the link to my site. Pakistani Call Girls


Henry Dart says ...
I wonder if the pandemic has direct effect to the interest rate as of the present. Glad NZ has the economy recover slowly.



Henry Dart NZ
Auckland
skip bin hire auckland
me says ...
google
saba says ...
I normally don’t smoke cart but Big Chief Carts are out of this world the is no missing out on flavor or potency and for the prices you can’t be that. You can’t I repeat can not compare these to any carts on the market right now
sana says ...
Superslot or Thai home language is called super slot. We are an online slots provider, there are many slots games to choose from, play a lot on mobile phones, number 1, both free credit 50, 100, 150, 200 that can support both IOS and Android systems, easy to apply, have easy access to log. -in has a system to make a top-up transaction Withdraw money via automatic system 24 hours a day,
Digital_Work says ...
I have read all the comments and suggestions posted by the visitors for this article are very fine,We will wait for your next article so only.Thanks! 123movies websites
Digital_Work says ...
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information.. exterminateur punaises de lit Paris
Digital_Work says ...
Nice to be visiting your blog again, it has been months for me. Well this article that i've been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. artisan couvreur 78
Digital_Work says ...
Today, I was just browsing along and came upon your blog. Just wanted to say good blog and this article helped me a lot, due to which I have found exactly I was looking. toiture Chantilly
Digital_Work says ...
I read a article under the same title some time ago, but this articles quality is much, much better. How you do this.. voyance amour
Digital_Work says ...
Thank you so much as you have been willing to share information with us. We will forever admire all you have done here because you have made my work as easy as ABC. Test Bank for ACCT3 Financial by Tyler
sava says ...
I was more than happy to uncover this great site. I need to to thank you for your time due to this fantastic read!! I definitely enjoyed every bit of it and I have you bookmarked to see new information on your blog. สล็อต ฟรีเครดิต
Digital_Work says ...
I am jovial you take pride in what you write. It makes you stand way out from many other writers that can not push high-quality content like you. Airco Lommel
Digital_Work says ...
I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. Webdesigner Bilzen
Digital_Work says ...
Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. Zonnepanelen rendement
Digital_Work says ...
I am jovial you take pride in what you write. It makes you stand way out from many other writers that can not push high-quality content like you. Airco Zutendaal
Digital_Work says ...
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. mens motorcycle jacket
Digital_Work says ...
This is very educational content and written well for a change. It's nice to see that some people still understand how to write a quality post.! http://bitcoin-era.de
Digital_Work says ...
I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. bitcoin era schweiz
더킹카지노 says ...
I’m not sure where you’re getting your info, but great topic. I needs to spend some time learning more or understanding more. Thanks for fantastic information I was looking for this info for my mission. Feel free to visit my website <a href="https://ox600.com/" target
="_blank"> 메리트카지노 </ a>

GET IN TOUCH FOR FREE, NO-OBLIGATION ADVICE ON YOUR NEXT INVESTMENT

“ *As a rule, we advise that you contact us as early as possibly to secure the most suitable time for your consultation.
Product Query

First Name*
Email*
Phone
 

CONTACT US

Kris Pedersen Mortgages Limited

+64 9 486 4719
info@krispedersen.co.nz
Skype: Kris_Pedersen    
Takapuna Office
 
388 Lake Road
Takapuna
Auckland 0622
Newmarket Office
 
Level 6
135 Broadway
Newmarket
Auckland 1023
Postal Address
 
PO Box 33650
Takapuna
Auckland 0740