Hard on the heels of yesterday's rate cut announcement by the Co-operative Bank, BNZ this morning has also cut two home loan interest rates.
BNZ has reduced its one year standard rate to 5.89%, down -10 bps from 5.99%.
And it has made en even larger reduction to its 2 year Classic mortgage rate.
The Classic product is BNZ's fighting brand that comes with a minimum 20% equity restriction.
The rate reduction for this 2 year offer is -24 bps, taking the rate to 5.75% from 5.99%.
At that level, BNZ's lowest two year offer is now the best in the market, matching that offered by HSBC.
These changes are effective today.
Overnight, wholesale benchmark rates fell again, continuing a clear trend lower. New Zealand swap rates fell yesterday following offshore moves, and are likely to fall even further today on the overnight drops in New York.
This sinking trend will give banks room to reduce fixed rates further if they choose.
See all banks' carded, or advertised, home loan rates here.
The current incentive offers are here.
This is how the updated mortgage rates compare as at 8:00 am Wednesday, October 15, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.75% | 6.25% | 5.99% | 6.49% | 6.99% |
 |
6.09% | 6.30% | 5.99% | 6.19% | 6.99% |
 |
5.89% | 6.25% | 5.75% | 6.19% | 6.99% |
 |
5.79% | 5.89% | 6.19% | 6.79% | |
 |
6.09% | 6.30% | 5.99% | 6.19% | 6.99% |
| Co-op Bank | 5.95% | 5.89% | 5.99% | 6.19% | 6.75% |
 |
5.75% | 5.75% | 5.75% | 6.99% | |
| SBS Bank | 5.85% | 5.99% | 5.99% | 5.89% | 6.79% |
 |
5.95% | 6.05% | 5.79% | 6.30% | 7.00% |
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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 »
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1 Comments
So the 6.19% for 3 years is now lower than the 6.29% for 3 years back in June 2014 and we have had about 3 of the 0.25% OCR price hikes since then so would someone like to explain in plain english how our overseas owned banking system operates ? or is I have just said all along, because we don't own them anymore they just don't have to listen to the reserve bank anymore ?
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