Following Friday's rate cuts to their two year fixed rates by ASB and Sovereign, BNZ this morning has trimmed a rate of its own.
It has cut its 3 year fixed rate.
The reduction is to a competitive 6.35%, down 4 bps from 6.39%.
This trumps the Westpac reduction on Friday morning for the same term.
While the new BNZ 3 year rate is the best for that term among its main rivals, you can get even lower rates for 3 years from SBS and the Co-operative Bank.
The BNZ move is just the latest in a swarm of selective main bank rate reductions.
More are likely because other main banks now have rate offers that seem less competitive, and wholesale rate pressures have stopped building.
The key battlegrounds are at the 18 month and two year fixed terms - but these recent attempts to lengthen the 'action' to three years however may entice more borrowers to move out of the longstanding rate range.
At the same time, TSB Bank has raised its one year rate today to 5.40%, up 10 bps from 5.30%.
Wholesale rates had crept up before New Year in anticipation of an official rate hike, but on international events have softened since then. More recently, they have started rising again as the threat of an RBNZ hike gets closer although these latest rises are modest.
However it is clear that market participants still have doubts that the RBNZ will actually move in March, especially if the exchange rate continues its rise.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
5.49% | 5.85% | 5.95% | 6.60% | 7.20% |
| BNZ | 5.39% | 5.85% | 6.29% | 6.35% | 7.20% |
| Kiwibank | 5.49% | 5.99% | 6.40% | 6.90% | |
 |
5.49% | 5.69% | 6.29% | 6.39% | 7.20% |
| Co-op Bank | 5.29% | 5.85% | 5.85% | 6.25% | 7.10% |
 |
5.39% | 6.29% | 6.55% | 7.20% | |
| SBS / HBS | 5.35% | 5.60% | 5.80% | 6.10% | 6.70% |
| TSB | 5.40% | 5.85% | 5.99% | 6.40% | 7.20% |
--------------------------------------------------------------
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 »
--------------------------------------------------------------
Fixed mortgage rates
Select chart tabs
3 Comments
I think the Irish are on to it AJ.......from Alter Ego's post last week. It's a catchy little tune.
http://www.youtube.com/watch?v=WSIUf2hD6Io
Redistribution should only ever be done through charity not Socialist incompetent Government Agencies.
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.