Personal Finance

Longer term fixed home loan rates hiked by ASB

Longer term fixed home loan rates hiked by ASB

ASB has turned out to be the first major bank to lift its five-year mortgage rate.

The bank has raised its longer term rate from 7.5% to 8%.

It should be noted that while cuts to the official cash rate have seen short term mortgage rates drop over several months, longer term rates have not followed suit.

Market analyst Martin Allison said that ASB's move is a sign of things to come.

Dividend Rate on securities set at 8.7 per cent by Rabobank

Rabobank

As per the media reports, the dividend rate by Rabobank was set yesterday, effectively an interest rate, on its $280 million Tier 1 capital raising in New Zealand.

The dividend rate for the securities was set at 8.7864 percent by Rabobank, which was 3.75 percent higher than the five year swap rate of 5.0364 percent.

As on 18th June, 2014, the dividend rate would be reset with the aim for further five year at the same margin over the five year swap rate at that time.

Fixed rates cut announced by Kiwibank

Fixed rates cut announced by Kiwibank

An announcement was made by Kiwibank today that it was cutting its six month and one year mortgage rates by 34 and 10 basis points (bps), respectively.

The new standard six months rate of Kiwibank would be 5.45% with its standard one year rate being 5.59%.

It should be noted that after Reserve Bank Deputy Governor Grant Spencer commented that the RBNZ was disappointed as banks had not yet passed on the April 30 Official Cash Rate cut to variable mortgage rates. So, the move would be welcomed by New Zealand borrowers.

Coffers enhanced by $1bn by Super Fund

Super Fund

In the month of April the Super Fund posted an investment return of nearly 9%, enhancing its coffers by $1 billion.

From April 1 to May 5 the unaudited performance achieved, puts forward a $1.75 billion jump from the fund's lowest balance in mid-March.

Now the entire fund is up to $12.5 billion, before regaining its level of last August. Thus it has approximately $2 billion more to recover.

Super Fund chief executive Adrian Orr expresses that the result illustrates the futility of attempting to pick and act on short-term signals.

More personal details sought by credit agencies

More personal details sought by credit agencies

It has recently come to vision that credit companies would be able to gain more access to the financial details of people who are seeking to borrow money under a proposal being investigated by privacy watchdogs.

Under this proposal, the credit companies would be able to find out whether previous credit applications had been approved, what they were for, who lent the money, what the credit limit was, and whether the account was still open.

As of now, they can only scrutinize how many times an individual has applied for credit and any negative details.

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