Kip Hanna: NZ Home Loans CEO on banks dropping short term mortgage rates after the OCR cut

Borrowers may want to be shopping around more for better deal following yesterday's double cut to the OCR. 

The Reserve Bank's signalling more cuts in April and May. 

All banks have started dropping short-term rates. 

New Zealand Home Loans Chief Executive Kip Hanna told Mike Hosking that's likely to continue as banks fight it out for available lending business. 

He says banks are becoming more competitive on rates and offers, and the structures can be just as important as the rates themselves. 

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Episode Transcript

Speaker 1 (00:00):
So Adrian came to the party has expected cash rate
down fifty points. There's more where that came from. We'll
get to that detail shortly when he joins us after
seven thirty mean time, the banks have passed on or
all of the fifty points in some way. But where
does it leave the mortgage market? New Zealand Home Loan
CEO cap Haanners with.

Speaker 2 (00:14):
Us kipt Morning Morning.

Speaker 1 (00:17):
Mike Or made the point yesterday that there's not a
lot of money being written at the moment. Will that
change things or not?

Speaker 2 (00:24):
Yeah, We're seeing certainly a higher level of activity with
our advisors in terms of inquiry, both on refinance and
also first home loan buyers. So I think yes, we
will see more activity.

Speaker 1 (00:36):
And is there a level of hesitation now given we
know two twenty five's are coming.

Speaker 2 (00:41):
Well, what we're seeing Mike in our INDHL property report
is actually the biggest concerns of homeowners and first home
buyers is more around job security and access to finance
rather than necessarily rates. That's east a bit because they
know rates are coming, who are reducing?

Speaker 1 (01:02):
Right? Does I mean when you talked about yesterday in
the press conference that banks are fiercely competing for this
money because they haven't written much money, they're out there
to get what is available. Is that true?

Speaker 2 (01:14):
Yes, we're seeing banks become more and more competitive, definitely
on rates and different types of offer. But I think
it's also important to bear in mind for a customer
client that the structure is equally as important as the
rate itself, and the personalized service and management of the
loan can actually result in a better outcome than just

(01:35):
focusing solely on on the rate.

Speaker 1 (01:38):
Very good point is are there deals to be had
to banks move a bit when you hustle.

Speaker 2 (01:43):
Yes, so I think it's you know, it's important to
get advice for your home loan and invest the loan.
And I think that's why having an advisor is important,
because they can actually get to those better outcomes with
some of the banks and suppliers. So, yes, there are
better outs comes to be had.

Speaker 1 (02:00):
This further discussion, I don't know whether you deal with them,
but I'm being told that investors a back big time?
Is that true?

Speaker 2 (02:07):
Coming back is how I describe it. I wouldn't necessarily
say they're back big time. I think what we're seeing
in our property report research is that they're coming back
into the market. I think as rates come down further, yes,
you will see them. You're backing it in a bigger way.

Speaker 1 (02:23):
Good stuff. Keep appreciate your expertise. Kip Hannah, who's the
New Zealand Home Loan CEO. For more from The Mike
Asking Breakfast, listen live to news talks that'd be from
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