NZ mortgage rates: How we compare with rest of the world
5:00 AM Saturday Oct 18, 2014
File photo / Janna Dixon
New Zealanders are paying some of the highest interest rates in the OECD, our house buyers saddled with the punitive prices due to the regime attempting to stop runaway inflation.
Christina Leung, ASB economist, said that on an international scale our rates were towards the top.
"New Zealand's mortgage rates are some of the highest of the developed countries, but in sharp contrast to developing countries such as India and Philippines which have double-digit mortgage rates. Part of this does reflect our relatively high central bank policy rate with the Reserve Bank being the first central bank out of the developed economies to start the tightening cycle," she said.
READ MORE: Loan rate horrifies TV star
A chart from the Organisation for Economic Co-operation and Development showed New Zealand rates at 4.2 per cent, behind Mexico and Iceland but paying almost twice as much as the Americans' 2.42 per cent.
5:00 AM Saturday Oct 18, 2014
File photo / Janna Dixon
New Zealanders are paying some of the highest interest rates in the OECD, our house buyers saddled with the punitive prices due to the regime attempting to stop runaway inflation.
Christina Leung, ASB economist, said that on an international scale our rates were towards the top.
"New Zealand's mortgage rates are some of the highest of the developed countries, but in sharp contrast to developing countries such as India and Philippines which have double-digit mortgage rates. Part of this does reflect our relatively high central bank policy rate with the Reserve Bank being the first central bank out of the developed economies to start the tightening cycle," she said.
READ MORE: Loan rate horrifies TV star
A chart from the Organisation for Economic Co-operation and Development showed New Zealand rates at 4.2 per cent, behind Mexico and Iceland but paying almost twice as much as the Americans' 2.42 per cent.
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