Bank mortgage war increases pressure on Bollard

Thursday 28 October 2004

Reserve Bank governor Alan Bollard may be forced to raise interest rates higher this month and again in December, in part because of a price war among banks over two-year fixed lending rates.

By The Landlord

National Bank joined the fray yesterday, trimming its two-year rate from 7.5 per cent to 7.3 per cent and argued that its total mortgage package may be better than market leader Bank of New Zealand. BNZ has undercut the other big banks with a two-year rate of 7.15 per cent.

National Bank said it would pay the first year's premium on house and contents insurance for new mortgages. That was worth about $800 a year, more than the saving on the BNZ's 7.15 per cent rate.

ASB is offering 7.2 per cent and ANZ 7.35 per cent, with bank customers saying that some BNZ rivals are willing to match the 7.15 per cent rate on bigger loans, after negotiation.


Read More - Opens in a new window
Commenting is closed

Property News

Major industrial development powers on

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.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Commercial

Resilience needed in face of change

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.

Site by PHP Developer