About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds Other Sites:   landlords.co.nz
Join our newsletter

Mortgage Rates Newsletter

Daily Weekly

sharemarket

ASB leads the charge

Thursday, June 24th 2010, 10:38AM

ASB broke away from the ranks and started hiking its floating and short-term mortgage rates last Friday after a week long stand-off between banks following the OCR increase.

ASB hiked its floating and six-month rates by 25 basis points to 6.00% and 6.10% respectively and it also increased its one-year rate by 10 basis points to 6.45%.

These hikes were quickly followed by the other banks and some non-bank lenders.

Kiwibank also launched a capped floating rate option this week priced at 6.50% for one year.

To read about all the rate changes click here.

In Expert Views BNZ economist Tony Alexander says if ASB had not kicked off mortgage rate increases, then the Reserve Bank would have started thinking in terms of boosting the Official Cash Rate (OCR) 0.5% in July simply to force the response it wanted.

 

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to MortgageRates.co.nz go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

  
Latest News

Kiwibank cuts. Just BNZ to go

Bollard's departure sparks monetary policy debate

Bollard casts off from bank

ASB cuts 1 to 5 year fixed home loan rates

Bollard holds OCR steady as US Fed prompts currency jump

What Bollard said

 
Compare Mortgage Rates
Compare
from
to
for
To graph multiple lenders, hold down Ctrl key while clicking in list box
Include OCR

How to use this

Find a Mortgage Broker
  Add your company
Latest Trends
Future interest rate hikes softened

The Reserve Bank has kept the OCR at 2.50% as expected, but had lowered its forecast track for the 90 day bill rate by around 60 basis points (0.6%) to a peak of 4.30% by the end of next year.

For borrowers that means floating home loans are not forecast to rise as much as previously forecast. In June the expectation was that the rates would rise 2% in the next 12 months: that figure has now been wound back to 1.4%.

MORE »
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

Disclaimer: Every possible effort has been made to keep the information in the rates tables as accurate as possible, however, neither the publishers of Mortgage Rates nor anyone engaged to compile these tables accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details directly with the provider concerned.

© Copyright 2012 Tarawera Publishing Limited. All Rights Reserved.