Monday 24th November 2008
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Its biggest cuts are to six-month rates for its Standard and Global Plus loans. They have each come down 124 basis points with the Standard rate dropping from 8.59 % to 7.35%.
Its sharpest rate is a new Classic six-month rate of 6.99%. This replaces the one year Classic rate of 7.99%.
The move comes in advance of the Reserve Bank’s next official cash rate announcement which is due next Thursday.
Economists, as reported on Good Returns, are expecting a 100 basis point cut to the OCR, however a couple, including Goldman Sachs JB Were and Deutsche Bank are suggesting the next cut could be has big as 150 basis points.
What is interesting is that a variety of pricing strategies are emerging from lenders as rates fall.
Kiwibank has moved to own the floating rate space, offering a rate of 7.95%.
Well below its nearest competitor, Bank Direct, which is sitting at 8.45%.
BNZ is the leader in the six-month term with its 6.99% Classic product. However, its standard six-month rate is 7.35%, the same as several other banks including ASB and Bank Direct.
At the next term, one-year, many of the banks are sitting around the 7.29%-7.30% mark.
The other characteristic of the market is that several lenders, notably Kiwibank and TSB are offering sharp rates for loans where there is at least 20% equity in the deal
To see what banks are offering and to compare rates go to goodreturns.co.nz MORTGAGE CENTRE.
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