Facilities are being put in place to temporarily assist customers facing cash flow issues.
Options include..
Access:
Waiver of home loan application, top-up, and re-documentation fees (Early Repayment Adjustment fees still apply).
Relief:
This morning the Reserve Bank has slashed the Official Cash Rate by 0.75% to 0.25%. We have never been here before folks. Historic.
Floating interest rates and short term fixed interest rates should get a trim depending on how much of the margin main Banks don’t keep for themselves.
On one day back in late June 2016 when the UK voted for Brexit our 5 year swap rate fell by 7% to 2.32%.
With a global flight from equity to bond markets this week our 5 year swap rate stands at a meagre 0.77%.
Fixed interest rate falls beckon for mortgage holders.
The OCR was kept on hold today @ 1%.
The Monetary Policy Committee adopted a wait and see approach.
No changes to Bank lending rates at time of writing.
Merry Christmas to one and all.
A big thank you to long standing clients and lending partners.
Hope you all get to feel some warm sand between your toes. 🙂
HSBC has today slashed all its fixed home loan interest rates to 3.35%.
1 year fixed through to 5 years fixed are all 3.35%.
Historic lows.
Today the Reserve Bank slashed the Official Cash Rate from 1.50% to 1%. This is the lowest rate in NZ’s history.
Swap rates which largely determine fixed interest rate pricing moved substancially. The 5 year swap rate declined by 11% to 1.06%.
Variable and fixed interest rates for borrowers should fall as a result depending on how much is passed on to borrowers by the Banks.
The Reserve Bank held the OCR at 1.50% today but cited “….weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives.”
The Reserve Bank has today cut the OCR from 1.75% to 1.50% citing “continuing house price softness in some areas” which means in Auckland.
It seems unlikely that the 4 main Banks will pass on the full 0.25% cut to their floating interest rate borrowers.
Utilising its global muscle HSBC is offering 3.69% fixed for 2 years for new borrowers seeking to borrow $500k +.