Aussies beating us to the bank

Owning a house across the ditch could cost you less in the long term, as Australian mortgage interest rates are well below those of local banks.

But it seems the Kiwi banks are not to blame for our higher interest rates: the issue is instead our poor saving and big-spending habits.

Bernard Hickey, of interest.co.nz, said our higher mortgage rates were caused by our smaller population, the way we spend our money, and how much overseas investors are willing to risk in New Zealand.

"It's all our fault," he said.

Our overseas credit rating, as set by Standard & Poor's, the world's provider of independent credit ratings, is listed as a AA+, compared with Australia's AAA rating.

To read the full NZ Herald story click here

Posted: 12 Apr 2009

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