Banks' home-loan war raises inflation fears
Sunday 24 October 2004
Big banks are slashing some interest rates in a war to win customers, just as the Reserve Bank warns again that some homeowners might struggle if interest rates rise.
By The LandlordYesterday, ANZ Bank dropped its two-year fixed-term rate for home loans half a per cent to 7.35 per cent, to be "competitive".
That rate matched the BNZ, which has promised to undercut any other big bank on the two-year rate till at least mid-December. BNZ is expected to respond.
"We have thrown down the gauntlet on the two-year (rates)," said BNZ business development general manager Andrew Whitechurch. Other banks had followed.
Read More - Opens in a new window
Commenting is closed
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.