Putting billions back in mortgage borrowers pockets

Over the past three years higher interest rates have translated in dollar terms to a $10 billion increase in mortgage borrowing costs.

It is an increase that has severely stunted household spending and economic growth, despite significant immigration and substantial pay rises, David Cunningham, Squirrel Mortgages chief executive says.

“If anybody is wondering why New Zealand is now in such deep recession, there’s the answer. Precisely what the doctor, Reserve Bank Governor Adrian Orr, ordered.”

Cunningham says all that will start to unwind from next month.