Rate changes in the lead up to Christmas

Four lenders made home loan rate changes this week in the lead up to Christmas, all increasing their one-year rates by between five and 26 basis points.

Wednesday, December 23rd 2009, 3:33PM

National Bank hiked up it one-year rate by 16 basis points to 6.15% and its 18-month rate by 15 points to 6.60%.  National Bank last increased its one-year rate back in October and this move means BNZ is now offering the lowest rates for this term at 5.99% through to 6.09%.

BNZ upped its one-year rates for its Standard/Flybuys and GlobalPlus options.  Both products went up 26 points to 6.25% and 6.35% respectively and are now the highest offered by a bank. 

SBS Bank also boosted its one and two-year rates by 5 basis points to 6.25% and 7.25% respectively. This puts its one-year rate in line with the average for the minor banks.

Coming in under the median rate for non-bank lenders is PSIS's new one and two-year rates which both jumped up 20 basis points to 6.15% and 7.15%.

In Mortgage Rates newseconomists reviewing the past year conclude that the financial meltdown could have been worse and Westpac sees a sharp drop in profitability and records above average lending growth in the September quarter.

We look at how the IRD's crackdown on property investors has resulted in extra tax of $63.6 million and mortgagee sales are predicted to stay at historically high levels for another 12 months.

Harcourts also makes a prediction for the new year with expectations of solidity in the New Zealand residential real estate market and improvement in both coastal and rural areas.

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