Current Interest Rates

Rates current at  29 July 2014

Floating 6.45
Fixed 6 months 5.80
Fixed 1 year 5.95
Fixed 2 years 6.00
Fixed 3 years 6.25
Fixed 4 years 6.75
Fixed 5 years 6.89
Revolving Credit 6.50

For more information regarding interest rates or current specials phone 0800-800-590 (7 days) or email info@mortgagecare.co.nz

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Please note that the above is a guide only. Phone 0800-800-590 (7 days) or click here to contact your friendly and experienced Mortgage Care Team for free mortgage advice.

Interest Rate Outlook – July 2014

Property Prices - The number of house sales around the country has started to drop, and house prices are now starting to slide in the same direction. A few factors trying to push prices in the opposite direction include an improving market backdrop, an increasing number of immigrants arriving on our shores and a decreasing number of houses for sale. But change is in the air, and we’re starting to see the initial signs of a cooling labour market.

The month of May saw a very slight rise in house sale numbers, but we are still way off the numbers we were seeing before the LVR limits were introduced. There’s no doubt that real estate turnover has become sedated, and price gains are slowing too. On the other side of the coin, a rise in migration is increasing demand for housing, and with a smaller volume of houses for sale, we’re seeing property prices resisting the drop. However, an increase in interest rates has taken its toll, and further increases are expected soon. First-home buyers are going to continue to find it harder and harder to get into the market as property becomes less affordable, even more so with increasing demands for debt servicing.

There is something to look forward too – it’s expected we’ll have an annual average GDP growth of 3.7 percent this year, with a growth of 2.9 percent estimated in 2015 too. But before you all get ahead of yourselves, remember there are still risks and vulnerabilities. While global growth continues to improve, it’s still in a fragile state. Likewise, New Zealand’s commodity prices are high, but they’re starting to fall. Also, our economy is still in debt, which means our potential growth is naturally stymied. We simply don’t have the capacity to be growing at this rate for long.

One of the major contributors to our nation’s growth is expected to be the construction sector, as the rebuild in Christchurch continues, and earth-quake strengthening is implemented throughout the rest of the country.

What’s Hot - Despite a third successive increase to the OCR, mortgage rates for a number of banks haven’t changed significantly. However, with the OCR tipped to rise even further, we wouldn’t be surprised to see rates that have resisted change go up as well. So now’s the time to look at those fixed rates, many of which sit lower than floating.
(Interest Rate Outlook sourced from NZFSG Adviser Services, 11 July 2014)