Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Home loan rates in holding pattern

Home loan rates in holding pattern

Interest rates appear to be in a bit of a holding pattern. After weaker than expected employment and retail sales numbers were released last week there is a view emerging that the Reserve Bank won’t increase its official cash rate on June 9.

Conversely rates are unlikely to fall based on comments made by the Reserve Bank on May 4.

We have continued to see some softening in longer term rates with a number of providers lowering their four and five year rates in the past week.

Those to lower rates include Bank of New Zealand, HSBC, Loan Plan, Pacific Home Loans and Superbank.

Superbank also lowered its six month and three year rates, while Pacific dropped all its fixed rates.

The most significant change last week was that there was only one increase – that was from the National Bank which put its one-year rate up to 7.80%.

Much of the attention this week is focused on Finance Minister Michael Cullen’s Budget which will be delivered on Thursday. The Budget is unlikely to impact on home loan rates, however the government is expected to unveil some initiatives to help first home buyers.

Two year and floating rates remain unchanged from the previous week. Currently two-year rates range from Kiwibank’s 7.50% up to NZ Mortgage Funds which is charging 8.45%.

Three year rates range from Bank Direct at 7.60% to NZ Mortgage Funds which is on 8.38%. However Westpac’s capped rate is 8.45%. The rate charged for a capped rate is the maximum that will apply during the life of the loan. Should rates fall during the loan period then the rate may come down.

To compare home loan rates go to

© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>