Rate changes dribble through

www.goodreturns.co.nz

Thursday 12th March 2009

Home loan rates haven�t moved as swiftly and as much as expected today, following the Reserve Banks� decision to lower its official cash rate another 50 basis points.

The only rate action, according to interest rate site Good Returns was from banks and mainly with floating rates. ANZ and National banks reduced their variable rates the full 50 points to 6.45%.

ANZ also introduced a new, three month rate of 5.65%. Meanwhile NBNZ has a six month fixed rate of 5.79%.

Westpac says it had already lowered its rates in expectation of today�s announcement and warns that OCR falls have already been priced into the market.

It says it continues to review other rates but suggests fixed term mortgage rates have already built in the expectation of today's cuts so significant changes there are unlikely.

BNZ�s only changes were to rural and business lending. Of the smaller banks SBS and TSB made reductions.

Somewhat surprising Kiwibank hasn�t made any announcement. Recently it has been the first lender to make changes after an announcement.

Of the major banks most floating rates are sitting just below the 6.50% market with the exception of BNZ and ASB, however ASB is expected to drop its floating rate to be in line with its competitors on Friday.

Amongst the smaller banks Kiwibank continues to have the lowest floating rate at 5.99%, TSB is next on 6.39% and SBS is on 6.45%.

To check and compare what lenders are offering and changes visit Good Returns Mortgage Centre

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