Kāpiti based Mortgage and finance adviser Glen Mattingley of NZHL says the recent official OCR rate cut is very exciting news and with banks passing it on that is great news for those with mortgages.
Banks had already started to cut their interest rates, ahead of the expected drop in the official cash rate (OCR) last week. The Reserve Bank duly delivered a cut by 25 basis points to 3.25 percent and indicated two more cuts were possible.
BNZ moved to offering a 4.95 percent rate for one year and two years and 4.89 percent for 18 months.
This was followed by ANZ offering app users 4.89 percent for one year, 4.85 percent for 18 months and 4.92 percent for two years.
After the Reserve Bank announcement, ANZ also said it was cutting its floating home loan, floating business and savings rates.
Westpac said it was cutting its rates to 4.95 percent across one, two, and three-year terms.
Kiwibank and ASB were cutting their floating rates, although also not by the full 25bps.
Mr Mattingley of NZHL says the official OCR rate cut is very exciting news and with banks passing it on that is great news for those with mortgages.
“Cuts in mortgage rates mean there is more discretionary spending which is good for the economy,” says Mr Mattingley.
He says it may take up to 14 days before the rate cuts are apparent for existing mortgages but for new clients the new rates will be immediate.
“We believe there will be further cuts in the future which will continue the positive trend for many in the market for mortgages,” says Mr Mattingley.
