Mortgage holders have been hoping the banks will pass on the latest 50 basis point cut to the OCR - but many will have to wait.

New Zealand's major banks have all cut their floating rates, but only ASB's fixed-term mortgage rate has moved down so far.

Mortgage advisor Bruce Patton says the banks had largely predicted the OCR would drop by 50 basis points - and priced their earlier cuts accordingly.

"We saw a few banks move a few days before, we saw the BNZ come down from 6.49 to 5.99 on the Monday before the OCR was even announced. A lot of the rates had already moved." 

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The podcasts in the SME Stream contain general information only, not financial or professional advice. Any opinions expressed in the podcasts are not necessarily shared by BNZ, or its related entities. BNZ is not liable for any losses resulting from the content of the podcasts.

Mortgage holders have been hoping the banks will pass on the latest 50 basis point cut to the OCR - but many will have to wait.
New Zealand's major banks have all cut their floating rates, but only ASB's fixed-term mortgage rate has moved down so far.
Mortgage advisor Bruce Patton says the banks had largely predicted the OCR would drop by 50 basis points - and priced their earlier cuts accordingly.
"We saw a few banks move a few days before, we saw the BNZ come down from 6.49 to 5.99 on the Monday before the OCR was even announced. A lot of the rates had already moved." 
LISTEN ABOVE
The podcasts in the SME Stream contain general information only, not financial or professional advice. Any opinions expressed in the podcasts are not necessarily shared by BNZ, or its related entities. BNZ is not liable for any losses resulting from the content of the podcasts.

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Bruce Patton: mortgage advisor on why the banks haven't factored latest OCR cut into their fixed-term rates

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/dd873e4c-963b-453a-997b-b23a014636fd/transcript