OCR INCREASE: RBNZ sticks a 'knife through the heart' of mortgaged kiwis - Property News AU/NZ | propertynoise.co.nz & propertynoise.com.au

PHOTO: Kiwi mortgage holders are in for ‘MASSIVE PAIN’ Image by rawpixel.com

The Reserve Bank of New Zealand has increased the Official Cash Rate (OCR) to 4.25%

A 75bp raise is the largest the bank has ordered since the official cash rate (OCR) was devised in 1999 and would be especially dramatic given that many economists are expecting economic growth to soon stall.

While only 32 percent of households have a mortgage on the primary residence (STATS NZ ) those 32 percent are in for a rough rise as banks will shift their mortgage interest rates.

Property debt represents 89 percent of New Zealand’s total household debt, not including properties held in a trust. Debts on the primary residence accounts for 66 percent of total household debt.

Don’t forget landlords though – their mortgages will increase significantly as well thus meaning – massively higher rent prices.

Current Interest Rates (Interest.co.nz)

Banks

Institution	Product	Variable floating	6 months	1 year	2 years	3 years	4 years	5 years
	Standard	7.34	6.65	6.59	6.79	6.89	7.19	7.29
	Standard	18 months = 6.69
	Special LVR under 80%		6.05	5.99	6.19	6.29
	Special LVR under 80%	18 months = 6.09
	Blueprint to Build	4.58
	Good Energy – Up to $80K					1.00
	Standard	7.35	5.95	5.99	6.19	6.29	6.99	6.99
	Standard	18 months = 6.09
	Better Homes Top Up					1.00
Bank of Baroda	Standard	7.50		6.45	6.95
Bank of China	Standard	8.35		6.75	6.95	6.95	7.15	7.15
	Special	6.45		5.75	5.95	5.95	6.15	6.15
	Special	18 months = 5.85
	Special – Classic		5.99	5.99	6.09	6.25	6.29	6.29
	Special – Classic	18 months = 6.09
	TotalMoney	7.29
	Std & Flybuys	7.29	6.59	6.59	6.69	6.85	6.89	6.89
	Std & Flybuys	18 months = 6.69
China Construction Bank	Non Standard	7.34	5.95	6.99	7.19	7.49	7.59	7.69
	Non Standard	18 months = 7.09
	Standard		5.50	5.99	6.29	6.39	6.85	6.85
	Standard	18 months = 6.19
Co-operative Bank	Owner Occupied	7.15	5.79	5.79	6.15	6.29	6.39	6.49
	Owner Occupied	18 months = 6.05
	Standard	7.15	6.29	6.29	6.65	6.79	6.89	6.99
	Standard	18 months = 6.55
	First Home Buyer Special			5.69
Heartland Bank	Residential	5.49		5.49	5.65	5.59
	Reverse Mortgage	8.00
HSBC	Premier	7.29	5.79	5.94	6.09	6.19	6.59	6.69
	Premier	18 months = 6.04
ICBC	Special	7.15	5.75	5.75	5.95	6.05	6.29	6.39
	Special	18 months = 5.85
	Standard	7.00	6.95	6.89	7.15	7.09	7.19	7.19
	Special		5.95	5.89	6.15	6.29	6.39	6.39
	Offset Mortgage	7.00
Kookmin	Standard	6.70	7.00	7.00	7.30
	Residential	7.29	6.39	6.39	6.59	6.69	6.79	6.79
	Residential	18 months = 6.55
	Special		5.89	5.89	6.09	6.19	6.29	6.29
	Special	18 months = 6.05
	First Home Combo			4.89
	Construction lending for FHB	4.74
	Unwind reverse equity	7.75
	Standard	8.05	6.59	6.59	6.95	7.09	7.19	7.19
	Standard	18 months = 6.89
	Special LVR <80%	7.25	5.79	5.79	6.15	6.29	6.39	6.39
	Special LVR <80%	18 months = 6.09
	Standard	7.35	6.59	6.59	6.79	6.79	6.89	6.89
	Standard	18 months = 6.69
	Special LVR < 80%		5.99	5.99	6.19	6.19	6.29	6.29
	Special LVR < 80%	18 months = 6.09
	Choices Offset	7.35
	Choices Everyday	7.45