TSB Bank has launched a new two year home loan 'special' rate of 5.50%.
This is a drop of -20 bps from their previous 'special' rate of 5.70%.
The new rate positions the bank as close to the lowest offer for a two year term, beaten by only 1 bps by SBS Bank who have a 5.49% offer.
In addition, TSB Bank have tightened up their incentive offer.
Until today, TSB Bank was offering a $2,000 cash incentive for new borrowing of $250,000 of more.
Now their new incentive only applies to their 2 year 'special', with no incentive offer for any other terms.
The new targeted incentive is for $1,000 cash plus a new iPhone 6.
To qualify, the customer must have their salary or wages direct credited to a TSB Bank account.
A minimum loan amount of $100,000 is required with one 16GB Apple iPhone 6 and cash incentive per borrower.
The offer is available until 31 March 2015 with any loan partially of fully drawn down by 31 May 2015.
An interest rate margin will apply for loans in excess of 80% of valuation. A fixed loan prepayment fee may also apply for early repayments.
TSB Bank has not changed any other offer rate, including their three year 'special' of 5.95%.
Last week they offered a 5.39% rate for two years fixed as a 'special' only to its Facebook followers. That deal has ended with more than 1,200 of their 34,000 Facebook followers claiming the offer.
Since the RBNZ January OCR review yesterday, wholesale swap rates have fallen. At the two year term they are down -24 bps since the beginning of the year.
In contrast, wholesale money rates for four and five year terms are by almost -40 bps since the beginning of the year.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how mortgage rates from the banks will probably compare as at 9:00 am Monday, February 2, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.45% | 5.70% | 5.55% | 5.99% | 6.49% | 6.59% |
 |
5.59% | 5.70% | 5.55% | 5.59% | 5.99% | 5.99% |
 |
5.69% | 6.09% | 5.65% | 5.69% | 6.49% | 6.59% |
 |
5.69% | 5.55% | 5.89% | 6.39% | 5.89% | |
 |
6.09% | 6.30% | 5.79% | 5.89% | 6.79% | 5.99% |
| Co-op Bank | 5.59% | 5.59% | 5.59% | 5.74% | 5.99% | 6.25% |
 |
5.45% | 5.65% | 5.79% | 6.49% | 6.49% | |
| SBS Bank | 5.59% | 5.74% | 5.49% | 5.49% | 5.94% | |
 |
5.70% | 5.90% | 5.50% | 5.95% | 6.40% | 6.50% |
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP mortgage broker can be contacted by following this link »
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