TSB Bank has followed the lead of some of its rivals and cut its fixed mortgages rates for terms of one year to three years.
TSB says the cuts, affective today, drop its 12 month rate by 40 basis points to 5.95%, that matches cuts one-year rate cuts by ANZ, the National Bank, ASB and Westpac yesterday.
TSB is also dropping its 18 month rate by 30 basis points to 6.15%, two-year by 30 basis points to 6.28% and three-year by 11 basis points to 6.99%.
See our article yesterday on the moves triggered by ANZ when it cut its fixed mortgage rates.
The moves follow sharp drops in wholesale 'swap' interest rates in the last week after the earthquake changed many views on where interest rates are headed.
See the interactive chart below on wholesale rates.
But the banks have held off cutting their floating mortgage rates, which most new borrowers have been choosing this year and which almost half of all mortgages are on.
The Reserve Bank of New Zealand is due to release its March quarter monetary policy statement next Thursday and is widely expected to cut the Official Cash Rate by at least 25 basis points.
That may trigger cuts in floating mortgage rates.
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3 Comments
Hello
I made a quick decision today to fix a couple of loans at the new rate 5.95%.But am still waiting for other loans on houses to roll over to the floating from 8.7% fixed.
The rates could come down a bit more,which will be great to be in the right place at the right time for once.
Many factors to rebuilding confidence in the market,the lower rates will help landlords to improve returns.
As NZ can see without the property people spending into the market the whole country has stopped.
If the government is going to pay for free houses for people who do not work than they should be fixing up older houses in run down areas.
Leave the new house building to people who can afford to buy them.
This is the right time fix a lot of problems.
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