The premium debate: subscribers have their say on the fall in mortgages

New mortgage registrations with banks have fallen by a third while a $750,000 loan fixed for a year now costs around $160 more per week than it did a year ago.

Half of the loans in
New Zealand is fixed and set to roll over in the next 12 months and an economist says rising interest rates would divert money away from sectors such as retail and hospitality.

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Express yourself by going to bayofplentytimes.co.nz or dailypost.co.nz and becoming a premium subscriber.

David H.

What a dog breakfast this government and the RBNZ have made.

Pip W

I work in real estate. I haven’t had an offer from a first home buyer or investors on a property since November last year – they’re completely shut out of the market. The top end is selling well – something is not working.

Alexander M.

This reduction in requests/loans is really nice to see. It is far better for potential applicants to voluntarily stop applying for loans than to face default penalties. Plus, the big worry/agro that comes with overspending. With the stupid price of housing these days and rising loan costs (although house prices are slowly coming down), it’s not a good idea to be a first-time home buyer today. Two years from now, prices will have fallen further and inflation/housing lending will have stabilized, leaving first-time home buyers a good chance to achieve their goals without undue pressure or heartache.

Peter M.

Have no mercy on banks and their speculating borrowers. This is a period of adjustment in the real estate cycle. Does the word reset come to mind?

Mark A.

Banks don’t make sense. We are considering reducing our mortgage by 20%. Still, the bank wants a full application to see if we can afford… 20% less than they’ve already lent us.

Glen S

The government has made changes to the CCFA but they are not coming in June. While sales volume is down, prices are easing. The number of homes for rent is increasing as some try to get by when they can’t sell. Those who have been taking rent for 10-20 years and not looking after the property are the ones who will suffer the most and quite well too. I don’t see the market collapsing while the cost of construction remains high.

Jean B

The OCR is still only 1.5%; Traditionally, banks would have applied a variable rate of around 2% above the ORC, but not at the moment. Lots of smoke and mirrors blaming someone else so the big Australian banks can make super profits and transport that profit back to Australia as management fees. It’s starting to feel a bit like a train crash, especially for people who bought recently and renters who will miss again.

– Reposted comments may be edited at the editor’s discretion.

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