Westpac offers ‘special’ one-year mortgage rate at 3.99%.

Are you planning to apply for a Mortgage loan? This might be a good time. Read further to get information about the current happenings in the loan market.!

Metro NZ Property Management would recommend you to first get a professional’s advice.

Westpac has introduced one-year mortgage rate “special”. From 18thJan onwards Westpac is providing a one-year fixed term rate of 3.99%, reducing 16 points on its standard rate of 4.15%.

The offer is only limited until February 1 and is only applicable for those who have more than 20% equity and have their salary going into a transactional account at the bank. 

Experts from the Mortgage department predict that the new mortgage rate introduced by Westpac could begin a mortgage war in the market.

The 3.99% rate is the equal lowest advertised one-year rate from a bank alongside HSBC’s “Premier” rate.

Experts from the loan market expect other banks to follow.

As per a statement from John Bolton, managing director of Squirrel Mortgages, he stated, “I had been surprised to see the Westpac rate but also expected other banks to match it.” He further elaborated that he wouldn’t be surprised to see another one come up out with a 3.99 per cent in the next following days.

Bolton explained the wholesale rates had fallen recently which had taken the pressure off bank margins after rises last year.

“Wholesale rates have come back a bit.”

Last year November, ANZ bank offered a one-year fixed term rate of 3.95%, the lowest offered by any major bank in long time which resulted in other Banks followed with ASB and Westpac providing equal offer and BNZ offering 3.99% over two years fixed.

But by 4thDecember three out of the major four had increased their rates back up to 4%.

However, the short-term offer seemed beneficial as figures from ANZ reflect that around 15,000 customers benefitted from the offer.

 A Spokeswoman from ANZ stated, “This helped grow our market share in November, contributing to more than $500 million in new home lending”

She further said, the offer had made November its biggest month for home lending since August 2016 with total home loan growth 4.5 times higher than around the same period in 2017.

“Calls to our contact center also increased by 80% cent in the following days too.”

Experts suggest anyone due to re-fix their mortgage in the next 60 days should try and lock in an offer and those who was due to end their fix term in the next six to nine months should also weigh up the cost of breaking their mortgage to re-fix it at a lower rate.

However, they feel it would be tough to predict where the rates will be in the next six months.

John Bolton stated, “We just don’t know. But these are historically low rates. So you have got to operate on the fact they won’t last.”

Asked if they would be matching Westpac’s rate ASB, Kiwi bank and ANZ all responded to say that they regularly reviewed interest rates.

An ASB spokeswoman said it took numerous factors into consideration when setting rates, including funding costs and market movements.

“As these and other wider market factors regularly change, we are constantly reviewing their impact on our interest rates and we will continue to make adjustments as required. Our rates are assessed on a daily basis.”

A spokesman for BNZ said it didn’t have anything to announce at the moment.

“But if you are the market at the moment it’s a great time to have a conversation with us.

The loan market is very competitive with lots of deals happening. If you are looking for an experts advice or a Property Manager for your investment property, please do contact us now on 09 985 5706 or [email protected]

Information retrieved from : – https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12192484

https://www.interest.co.nz/personal-finance/97668/westpac-reduces-one-year-mortgage-rate-special-16-basis-points-399

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