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

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Site by PHP Developer