Kiwis pay extra high mortgages over ‘risk’
Kiwi home buyers pay more for their mortgages than most of the rest of the world.
Mortgage interest rates have gone up in response to the Reserve Bank raising the Official Cash Rate to 2.75 per cent last week. But they have been high relative to the rest of the OECD for 20 years.
Across the Tasman, interest rates are often considerably lower than in New Zealand.
The price of a house in Belmont, Perth, compared with Belmont, Lower Hutt, may be about the same, but Kiwis end up paying more for their money.
This week, ANZ offered a floating rate of 5.88 per cent in Australia and a fixed two-year rate of 4.99 per cent.
In New Zealand, the same bank offers its floating rate at 5.99 per cent and a fixed rate of 6.29 per cent.