The Week That Was - Week ending Friday 8th October
This past fortnight we have had some interesting developments, with the first OCR increase in 7 years taking the headline. Although widely expected, it does show the shift in perceptions with interest rates, and how the Reserve Bank will factor regional lock downs, with both the Waikato & Auckland regions in Level 3 during the announcement. We have also seen one of our largest mortgage lenders adjust their policy for over 80% LVR lending, a result of the RBNZs speed limit changes on banks’ ability to lend to the high LVR space which we discussed in our last post. The change has seen a higher bar set for minimum ‘uncommitted income’ they need to see in order to meet their lending policy. We have seen a significant change to banks appetites to lending to those without a 20% deposit, with a lot of the mainstream banks now limiting funds to existing customers and/or live applications, so making pre-approvals a bit more difficult to come by.https://lnkd.in/g8TxWFgR
As a result of the increase in the OCR, we do have a number of shifts here, with some lenders already passing on the increase in their floating rates. It’s important to note here that most lenders are open to negotiations on floating rates·
- ANZ has increased their standard floating rate to 4.59%·
- BNZ has increased both their TotalMoney & FlyBuys floating rate to 4.70%
- KiwiBank has increased their floating rate to 4.00% which is still market-leading even with the increase
- Westpac has increased their standard floating rate to 4.84%
Full break down of advertised rates from every lender here: https://lnkd.in/ggAp7VhC
What’s on the Market in Tauranga
A very small reduction in houses on the market this week compared to last, with 474 properties for sale on TradeMe in Tauranga. However some good reading for those hunting for a place near the beach, with another big jump to 282 properties for sale on the beach side of the bridge, and 192 on the city side.
- 28 of these properties are vacant land
- 73 of these appear in a search range up to $650,000, a number of these are sections, and dwelling builds.