No.8 Mortgages has made some sizeable changes to its rates across the board to come into line with many other lenders with now quite competitive rates. The biggest changes were to its floating and short term rates, which were cut by over 100 basis points each. Its floating/variable rate dropped by 100 basis points to 6.45%, its six-month rate dropped 144 bps to 5.55% and its one-year rate was cut by 129 points to 5.50%. Its long term rates of four and five-year terms went up by 16 and 51 basis points respectively. No.8 also dropped its revolving credit facility rate by 115 basis points to 6.50%.
Economists have been a little bit surprised about the market's reaction to last week's official cash rate announcement, particularly the consequent rise in the New Zealand dollar and pricing in an earlier rise in mortgage rates than the Reserve Bank is forecasting. Full article, including links to reports here
