Mortgage costs increase with Christmas

www.MortgageRates.co.nz

Wednesday 23rd December 2009

There have been many changes to home loan rates this week in the lead up to Christmas with four of the banks increasing one-year rates.

Mortgagerates.co.nz reports that National Bank hiked up it one-year rate by 16 basis points to 6.15% and its 18-month rate by 15 points to 6.60%. National Bank last increased its one-year rate back in October and this move means BNZ is now offering the lowest rates for this term at 5.99% through to 6.09%.

BNZ upped its one-year rates for its Standard/Flybuys and GlobalPlus options. Both products went up 26 points to 6.25% and 6.35% respectively and are now the highest offered by a bank.

SBS Bank also boosted its one and two-year rates by 5 basis points to 6.25% and 7.25% respectively. This puts its one-year rate in line with the average for the minor banks.

Coming in under the median rate for non-bank lenders is PSIS's new one and two-year rates which both jumped up 20 basis points to 6.15% and 7.15%.

Meanwhile Economists reviewing the past year conclude that the financial meltdown could have been worse and Westpac sees a sharp drop in profitability and records above average lending growth in the September quarter.

Harcourts also makes a prediction for the new year with expectations of solidity in the New Zealand residential real estate market and improvement in both coastal and rural areas.

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