TSB Bank has reduced its 18 month fixed home loan rate to 5.40%, a 25 bps cut from 5.65%.
The change is effective today.
This positions TSB close to the market leading BNZ rate of 5.39% for the same term.
(The BNZ rate is for their Classic product where the LVR is <80%. Above that, the BNZ rate is 5.80%.)
TSB Banks rates are quoted in the style "from 5.40%" which means that rates at this stated level will only apply for borrowers with the best credit profile - and these days that usually means an LVR of 80% or less.
A spokesperson for TSB advised that the low equity margin that applies above 80% LVR is 0.50%.
Irrespective of any LVR restrictions, Welcome Home Loans may also qualify for the sharpest rates as these are effectively underwritten by Housing NZ.
TSB Bank has a dominant market share in Taranaki, and are looking to grow their book in all other national markets. However, the large Auckland market is where a good porportion of that growth extension is coming from, they confirmed.
The new rate announced today is a 'limited time' offer.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.19% | 5.59% | 5.95% | 6.50% | 7.10% |
 |
5.15% | 5.65% | 5.70% | 6.40% | 6.99% |
| BNZ | 5.39% | 5.39% | 5.95% | 6.29% | 7.10% |
| Kiwibank | 5.25% | 5.65% | 6.40% | 6.90% | |
 |
5.15% | 5.75% | 5.65% | 6.50% | 7.10% |
| Co-op Bank | 4.99% | 5.59% | 6.20% | ||
 |
4.75% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 5.20% | 5.45% | 5.45% | 5.99% | 6.55% |
| TSB | 5.40% | 5.40% | 5.85% | 6.45% | 7.00% |
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