(Updated with details of a one year drop as well.)
BNZ has shifted its home loan rates this morning, challenging its rivals with a sub 5% one year rate and a sub 6% three year rate.
It has effectively reduced its 1 year fixed rate by introducing a Classic rate of 4.95%. This is 44 bps below their Standard/FlyBuys/GlobalPlus rate of 5.39%.
This 4.95% reprises the same 1 year Classic rate that last ended on June 21, 2013.
It has ended its market-leading 18 month rate, reverting to a more standard 5.80%, up 41 bps for its Classic home loan from 5.39%.
However, it has dropped its three year fixed rate for its Classic product to 5.99% from 6.29% and making that rate the best of the main banks for this term and the best-equal with SBS.
There are now four sub 5% rates in the market, from ANZ (6 mths), BNZ, HSBC and Co-op Bank.
BNZ's Classic home loans require an LVR of less than 80%.
It has also reduced its <80 LVR Standard/FlyBuys/GlobalPlus fixed three year rates to 6.40%, down 10 bps from 6.50%.
And it has reduced its Standard/FlyBuys/GlobalPlus fixed five year rates to 6.99%, down 11 bps from 7.10%.
Similar reductions apply for those products that have an LVR of over 80%, although pricing is higher by 50 bps across all terms.
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% | 5.59% | 6.40% | 6.99% |
| BNZ | 4.95% | 5.80% | 5.95% | 5.99% | 6.99% |
| Kiwibank | 5.25% | 5.65% | 6.40% | 6.90% | |
 |
5.15% | 5.75% | 5.59% | 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% |
--------------------------------------------------------------
Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
--------------------------------------------------------------
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.