Spring mortgage deals have been thinner on the ground than usual, although there are still some specials being advertised.
Lindsay Hore, mortgage broker for Forsyth Barr, said that at this time of year lenders were like spring lambs - "all happy and fluffy" - and rolling out the offers for homebuyers. However, he said there hadn't been as much biting for business this season.
"In past years, there has been a lot more on offer. I wonder whether the lenders are thinking, why bother, if there's not lots of market share to be had."
According to the Real Estate Institute, the usual spring surge in the housing market just didn't happen this year, with potential homebuyers cautious ahead of the election and warned off by higher interest rates.
Special deals so far this spring have included:
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Bank of New Zealand's offer of "rates from 5.5 per cent for the first three months" (the current floating rate is 6.5 per cent). You need to take out a mortgage for at least a year, loans must be approved before November 1 and then drawn down by December 17.
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ASB Bank's prize draw for $250,000. You qualify if you already have a mortgage with the bank or take one out by November 19. Hugh Burrett, ASB's general manager sales and service, said the prize draw added a bit of sizzle to the springtime. "It seems to work for us. It raises awareness and interest, and gets people in the door."
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National Bank's "WonderRate" of 5.95 per cent on its flexible home loan (a revolving credit product), compared with its current floating rate mortgage is at 6.50 per cent. The bank is also pushing its offer of borrowing as much as 95 per cent of the value of your home (with a minimum loan of $50,000). A spokeswoman said the aim was to position the National Bank in the market as "being more accessible".
