Property investor mortgage borrowers are worried interest rates will rise this year, and this cycle of the market won’t result in firm house price increases.

While borrowers have flocked to floating to one year fixed term home loan rates over the past year in anticipation of interest rate cuts one mortgage broker urges his clients to think about the ramifications carefully.

Debate among economists is starting to emerge on how much the RBNZ will cut the OCR at its next review on 19 February.

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Mortgage borrowers are so confident interest rates will come down even further this year, nearly half the mortgage money borrowed in November was on floating rates.

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.

Buying Bluestone Home Loans New Zealand mortgage book is part of Australian-listed Challenger’s plans for further expansion in New Zealand.

Although houses prices typically rise more than apartments over the long-term, the gap is not as wide as many people expect.

The newly enacted Residential Tenancies Amendment Bill will encourage more rental homes, provide greater clarity for landlords, and improve tenant accessibility, REINZ says.

Squirrel Mortgages chief executive David Cunningham wonders whether the Commerce Commission should have made bank resourcing one of its recommendations in the bank competition study completed last year to ensure a level playing field.

Australian listed Challenger has bought non-bank lender Bluestone Home Loans New Zealand mortgage book for $597 million.

With a $500 million capital injection, Kiwibank says it can save New Zealanders $1.5 billion by having more aggressive pricing, better terms and better turnaround.

Mortgage interest rates should fall back and settle somewhere between 4.5% and 5% next year.

ASB has warned mortgage borrowers, interest rate markets are volatile and can change quickly and being aware of the risks is an important part of choosing a mortgage strategy.

OCR cuts have had a big effect for new mortgage borrowers.

ANZ says it is building a nimble and agile banking system to stay relevant when innovative financial technology companies are popping up to provide stiff competition in niche areas.