Leon Chen
Nov 1, 2024
1. On October 7th, ANZ raised its maximum approved construction loan amount based on fixed-price contracts from the current 2 million to 3 million, excluding land purchase costs. It is now acceptable to subdivide land into up to four titles, with the maximum LVR remaining unchanged at 70%. Given the current environment of continuously rising construction costs, this allows for the provision of construction loans to more clients.
2. On October 9th, the Reserve Bank of New Zealand (RBNZ) lowered the Open Rate of Return (OCR) from 5.25% to 4.75%. A further reduction is expected at the meeting on November 27th. Following the OCR adjustment, major banks completed a new round of interest rate adjustments in October, with interest rates continuing to decline, as shown in the chart below.
3. On October 10th, Westpac lowered its loan approval calculation rate to 8.15%. This will slightly increase the loan amount available to those with the same income.
4. On October 14th, ANZ lowered its loan approval calculation rate from 8.5% to 8.05%. This will slightly increase the loan amount available to individuals with the same income.
5. On October 23, ASB lowered its loan approval calculation rate from 8.7% to 8.1%. This will slightly increase the loan amount available to borrowers with the same income.
6. As of October 31, the listed interest rates of the four major banks are shown in the image below. The actual interest rates may be lower. Please inquire for details.
During a downward cycle with frequent interest rate changes, it is recommended to relock the interest rate when it is about to expire. If the interest rate expires around the time of the OCR adjustment, you can consider waiting for the OCR adjustment to be announced before locking the interest rate to avoid the interest rate being lowered after the interest rate is locked.