Mortgage interest rates down

Press, 2 December 1987, Page 16

Mortgage interest rates down

This table compares mortgage interest rates offered by Christchurch’s major financial institu-

tions. Those who have mortgages taken out before the latest cuts in rates

may have to wait slightly longer for the reductions to filter through. Many institutions have

to pay higher interest rates on term deposits until the deposits mature. However, most institu-

tions anticipate dropping existing mortgage rates to new rates as soon as possible.

1st mortgage 2nd mortgage Eligibility criteria Terms Availability Trust Bank Canterbury 19.75 per cent 21.75 per cent Lending to anyone who can make the repayments Flexible. No limit to lending. Up to 90 per cent of valuation. Funds readily available. Housing Corporation Between 7 and 17 per cent 17 per cent Income and family related. Funds mainly for modest income first home seekers Flexible. Up to 30 years. Approximately • $40,000 depending on circumstances. Also Homestart up to $8000 for existing house and $12,000 for new house. No restriction on lending. Postbank 19.75 per cent for clients 20 per cent for non-clients 23 per cent for clients 23-25 per cent for non-clients Lending to clients and nonclients 25 years. No more than 70 per cent of valuation. Funds are available. ANZ 19.75 per cent for clients with deposit support 20.75 per cent for non-clients Normally sufficient funds on first mortgage to eliminate need for second mortgage Lending to clients and nonclients. 20 years. Lending limit $75,000 or 70 per cent of valuation, whichever is less but individual cases considered on merit. Limited funds for new clients. Funds available for clients. BNZ 20.5 per cent 24 per cent Lending to clients and nonclients. Good savings record from clients and ability to repay from non-clients. 20 years on table basis. Maximum determined on borrower’s ability to service. Not restricted. Westpac 19 per cent 22 per cent Available to anyone with past deposit support able to service the loan. 25 years. Maximum $100,000 but will consider more if client can repay. Limited funds for clients. National Bank 18.5 per cent for clients with good savings record 19.5 per cent for new clients and clients with less savings history Some second mortgage lending Lendings to clients and nonclients but clients favoured. Maximum to $50,000 on a table mortgage or to $75,000 on a straight line basis. Repayments to be no more than 25 per cent of gross income. Funds readily available. United Building Society Range from 16.75 per cent for five years to 21 per cent for 20 years depending on term and risk Range from 20 per cent to 22.5 per cent depending on term Lending freely to all with 0.5 per cent discount on rates for terminating shareholders and United Realty World customers. 20 years. 85 per cent of valuation; repayments to be no more than 35 per cent of gross income. No restriction on funds. Lending freely. Countrywide Building Society 19 per cent 22 per cent Lending to clients and nonclients. 1 25 years or less. No maximum but payments cannot exceed 30 per cent of gross income. No more than 75 per cent of property value or 90 per cent if Fasttrack holder. No restriction on funds. Lending freely.