SBS Bank has reduced the interest rates for all its fixed rate offers from 6 months fixed to 2 years fixed, and added a new offer at 18 months.
These same rates apply for its sister brand HBS Bank.
Effective Wednesday, April 24 it is reducing its six month rate to 4.99%, down 11 bps from 5.10%.
Its one year fixed rate is reduced 26 bps to 4.99% as well, down from 5.25%.
Their new 18 month fixed rate will also be priced at 4.99%, as will its two year fixed rate, which is reduced 31 bps from 5.30%.
Their three and five year fixed rates remain unchanged at 5.65% and 5.99% respectively.
No special conditions have been advised for any of their new mortgage rate offers.
These latest reductions follow changes made earlier in the week by ASB, Sovereign, NZ Home Loans, and the Co-operative Bank.
The sub 5% rates have so far only been adopted by the second tier banks, with none of the big four yet joining in.
See all banks' advertised home loan rates here.
This positions the SBS/HBS rates among the New Zealand banks as follows:
TSB Bank has a lower rate Special 15 month offer of 4.95%.
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6 Comments
The longer the 'cheap as chips money' game continues...the deeper the risk and danger on the upswing in credit costs.
Fatheads that allow, indeed encourage this 'game' are playing with the future of thousands of families locked into massive mortgages and a legal system owned by the banks.
Or are we expected to believe that this QE central planning credit flood that started in circa 08, will go on forever!....only the very deeply stupid will swallow that one.
It is now too late for the puppet entity..the RBNZ..to go against the instructions of the big banks and raise the ocr...because the election looms ever closer and the Pinky Green powerplay has put fear into the Beehive.....The word will have gone out..."LET THE CHEAP CREDIT FLOW"...hence this report.
But the cheap credit is buying a property bubble...and we know where all bubbles end up!
RBNZ statement interpreted: " We will punish all small business owners and home-owners by maintaining punishing high interest rates relative to all our trading countries - because the govt requires as many foreign buyers of our properties as possible to push up the prices (but we will punish small NZers)."
"We will also raise interest rates possibly soon to suppress any signs of organic economic growth because we can rely on Fonterra & a handful of large corporates to keep the countries income going. We don't need small businesses, growth in the provinces, accessible housing to young couples, they can be picked up on welfare"
So what if UK & US has an OCR of .25% / .5%?
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