Looks like we have dropped a cylinder and lost a year of posts. 🙁
ASB has today tweaked up their Fixed Interest Rate specials.
1 year up 0.04% to 4.29%
2 years up 0.05% to 4.34%
3 years up 0.05% to 4.39%
The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.0 percent. The Fed Funds rate in the USA was also left unchanged.
Our Governor indicated that on current projections the Cash Rate will need to fall further to ensure inflation gets up to the middle of the target range.
The ANZ, NZ’s largest Bank, has passed on to its floating rate borrowers a measly 0.05 of the 0.25% cut in the OCR this morning.
After announcing the cut Reserve Bank Governor Graeme Wheeler commented: “We would like to see most of (the OCR cut) passed on.”
In the OCR announcement there is a bias toward a further cut.
Today the RBNZ released a “consultation paper” about further lending restrictions being applied in attempt to slow down the price increases of the property market.
The majority of Property Investors will soon need a 40% deposit which is to be applied nationwide. The Banks will start implementing this before the proposed start date of 1st September as the finger was wagged with “We expect banks to observe the spirit of the new restrictions in the lead-up to the new policy taking effect.”
In response to the shock Brexit referendum our 5 year swap rate has collapsed by 7% to 2.32% today. This is the reference rate from which the 5 year fixed housing interest rate is derived. Odds increase for lower interest rates in the near term.
HSBC has broken mortgage records by offering customers a 2 year fixed rate home loan at an interest rate of 0.99 per cent.
Sorry folks this rate is for customers in the UK…. 🙂
The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent. There is a bias towards further cuts with the statement “Further policy easing may be required “.
The Auckland housing market got about as strong a warning as it gets from a Reserve Bank with “Auckland house prices in particular are at very high levels….”.
In a sign that the ANZ Bank views the property market as being “toppy” they have reduced the maximum Auckland property lending ratio to 85% (including the LEP fee’s).
Property lending outside of Auckland is also getting trimmed to 90% .
Its a clear sign the Bank is looking to reduce its exposure.
This 2 bedroom brick and tile unit in St Mary’s Bay sold today @ $1,020,000.
An end unit In a block of 4 its approximately 59 sqm internally.