In an unusual move, the Public Trust has reduced its mortgage rates by between five and ten basis points for three fixed term periods, keeping their rates for those terms by far the best in the market.
There seems to have been no competitive pressure to move at this time, and comes as wholesale swap rates have been rising over the past two months or so.
Their two year fixed mortgage rate is now 6.45%, the lowest in the New Zealand market at this time. The main banks and Kiwibank have this rate at about 6.70%, although HSBC has their Premier rate at 6.49% (however, you need to borrow at least $500,000 to qualify for that HSBC rate).
Their three year fixed rate is 6.85% and this is also well below all others. Their five year fixed rate is 7.50%, similarly attractive.
Public Trust's one year fixed rate is unchanged at 6.19%, and this remains the market leading rate for this term across all institutions.
You can see all mortgage rates on offer in New Zealand here >>
The Public Trust has a mortgage book of about $240 million, and made an overall tax-paid profit of $4.8 million in its 2009-2010 year. However, that result covered a loss of $3.5 million (pre-tax) on its mortgage book. Mortgages make up about a quarter of the Public Trust's total balance sheet.
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