Updated with Kiwibank rate cut announcement
Two major banks announced mortgage rate cuts this morning. They have now been joind by Kiwibank who have also cut rates
Westpac has reduced its 2 year 'special' by -30 bps to 5.49%.
It has also reduced all its standard rates from 1 year to 5 years. But none of these changes are market-leading.
Going against the trend, it did raise its 6 month fixed rate offer by +9 bps to 5.89%.
On the other hand, ASB has trimmed two of its 'special' rates.
Its 2 year fixed 'special' has been cut by -6 bps to 5.39%.
Its 5 year fixed 'special' has been cut by -24 bps to 5.75%.
In fact, that 5.75% rate is now the lowest in the market for a 5 year fixed term.
Having a hotly competitive 5 year rate is somewhat ironic in light of comments yesterday by ASB CEO Barbara Chapman who claimed the new TSB Bank 10 year rate is no threat because "locking yourself up [in long term rates] isn't attractive for everyone" for a variety of reasons.
ASB 'specials' require a 20% equity in the secured property.
Westpac 'specials' require the same, plus salary credit to a Westpac transaction account, and a Westpac credit card or specified insurance product.
The ASB changes announced today also apply to BankDirect and Sovereign.
All these changes come into effect today.
Kiwibank has announced their intention to cut mortgage rates on Monday.
Its three year 'special' is to go down by -34 bps to 5.55%, the same rate they have for two years.
Their four year standard rate is being reduced by -40 bps to 5.99%.
And their five year 'special' is being reduced by -10 bps to 5.79%.
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 compare as at 9:00 am Friday, February 13, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.39% | 6.09% | 5.39% | 5.79% | 6.49% | 5.89% |
 |
5.59% | 5.70% | 5.39% | 5.59% | 5.99% | 5.75% |
 |
5.69% | 6.09% | 5.39% | 5.69% | 6.49% | 5.79% |
 |
5.69% | 5.55% | 5.55% | 5.99% | 5.79% | |
 |
5.99% | 6.09% | 5.49% | 5.89% | 6.49% | 5.99% |
 |
5.59% | 5.49% | 5.59% | 5.74% | 5.89% | 5.89% |
 |
5.45% | 5.65% | 5.79% | 6.49% | 6.49% | |
| SBS Bank | 5.59% | 5.74% | 5.19% | 5.49% | 5.79% | |
 |
5.70% | 5.80% | 5.50% | 5.95% | 6.40% | 6.50% |
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