Short-term home loan rates a rising

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The past week has been busy with lots of rate changes – as could be expected.

Monday, September 20th 2004, 10:38PM

The main move has been the 25 basis point increase in floating rates. Currently most banks have increased their variable rate, as has Sovereign – the largest non-bank lender. In fact when you look at the table there are very few lenders which haven’t increased their floating rate.

Rates get a little more interesting when you look out further. Quite a few organisations have increased their short-term rates, and at the longer end we have seen some rates fall a little.

For instance, in the past week, ANZ has dropped its four and five year rates, National Bank and NZ Mortgage Fund have lowered their five year rates and Pacific Home Loans has lowered its four year rate.

While they haven’t been big falls, a drop’s a drop. Much of the talk in the past week or so has been about how fixed rates, such as two years, are so heavily discounted. We find that two-year rates now range from 7.40% (PSIS, BNZ and Bank Direct) to 8.45% for GEM and 8.40% for Resi.

One-year rates are also interesting as 10 borrowers are at the bottom of the table with 7.25%. Kiwibank is 7.15% and Napier Building Society is 7.00%. However, 19 lenders upped their rates during the week and GEM is the highest at 8.55%.

Check out the rate moves ,a href="http://www.goodreturns.co.nz/section/200.html">HERE

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