Mortgages

Home loan interest rates war 'risks another boom'

The battle for home-lending customers, which has seen the two-year fixed interest rate fall to 6.9 per cent, is unsustainable and risked reigniting the housing boom, bank economists say.

Wednesday, November 17th 2004

ASB Bank on Friday lowered its rate to 6.95 per cent to undercut the Bank of New Zealand's market leading rate of 7.15 per cent.

However, the BNZ hit back with 6.9 per cent to maintain its promise of not being undercut till at least December 17.

In reality customers were generally able to get the lowest rate in the market regardless of who they banked with or the advertised rate.

National Bank economist John McDermott said the profit margin on the two-year rate was now so thin that after paying a mortgage broker's commission banks were making a loss.

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Unity First Home Buyer special 3.99
ICBC 4.25
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.35
TSB Special 4.39
Co-operative Bank - Owner Occ 4.45
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
Westpac Special 4.45
SBS Bank Special 4.49
BNZ - Std 4.49
Kiwibank Special 4.49
TSB Special 4.49
AIA - Go Home Loans 4.49
ANZ Special 4.49
ASB Bank 4.49
Co-operative Bank - Owner Occ 4.49
ICBC 4.59
Wairarapa Building Society 4.59
SBS Bank Special 4.99
Westpac Special 4.99
ICBC 4.99
BNZ - Std 4.99
AIA - Go Home Loans 5.15
ASB Bank 5.15
Co-operative Bank - Owner Occ 5.19
ANZ 5.39
TSB Special 5.39
Kiwibank Special 5.39
Kainga Ora 5.49
SBS FirstHome Combo 3.44
AIA - Back My Build 3.54
SBS Construction lending for FHB 3.74
CFML 321 Loans 4.25
Co-operative Bank - Owner Occ 5.30
Co-operative Bank - Standard 5.30
ICBC 5.39
Heartland Bank - Online 5.45
Kiwibank - Offset 5.80
Kiwibank 5.80
ANZ 5.89

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