SBS Bank's market-leading three year rate has lost its position before it started.
BNZ has announced two rate reductions, including a 4.49% three year 'special' rate.
This is -16 bps lower than the SBS Bank rate and now claims the 'market-leading' mantle.
It is -76 bps lower than its standard fixed three year rate.
This hot three year rate is substantially lower than every other rival.
BNZ also cut its two year 'special' to 4.39%, down -10 bps from 4.49%.
BNZ's 'special' rates require at least 20% equity 'in the property provided as security', and you need to have a transaction account with BNZ with your full pay credited to this account. (There is no requirement to have other products however.)
Update: Westpac has now just announced a small hike in their two year 'special' to 4.43%, and that move makes the new BNZ two year rate market-leading for that term.
The next review of the OCR will happen in two weeks, on Thursday, January 28, 2016. Markets are currently not expecting any change at that time, although the risk landscape is changing quickly.
But wholesale swap markets are changing, especially for terms 2-5 years as risk aversion sinks in.
Market turmoil and uncertainty in China will also influence rate pricing if it continues. This will mainly be felt through the risk premiums that wholesale borrowers must pay to access funds. These risk premiums have been rising fast in the past few days, even as wholesale rates have been softening.
See all banks' carded, or advertised, home loan interest rates here.
Mortgage rates now compare across all banks as follows:
| below 80% LVR | Floating | 1 yr | 18mth | 2 yrs | 3 yrs | 5 yrs |
| % | % | % | % | % | ||
 |
5.74 | 4.35 | 4.95 | 4.49 | 5.10 | 5.35 |
 |
5.75 | 4.39 | 4.49 | 4.49 | 4.75 | 5.25 |
 |
5.79 | 4.39 | 5.09 | 4.39 | 4.49 | 5.50 |
 |
5.65 | 4.49 | 4.49 | 4.85 | 5.35 | |
 |
5.85 | 4.39 | 4.95 | 4.43 | 4.80 | 5.35 |
 |
5.70 | 4.39 | 4.49 | 4.49 | 4.75 | 5.15 |
 |
6.10 | 4.25 | 4.49 | 4.99 | 4.99 | |
 |
5.74 | 4.35 | 4.69 | 4.49 | 4.65 | 5.29 |
 |
5.74 | 4.35 | 4.69 | 4.39 | 4.79 | 5.35 |
In addition, BNZ has a fixed seven year rate of 5.90%, while TSB Bank offers a fixed ten year rate also at 5.75%.
Fixed mortgage rates
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3 Comments
3 years is a long time in the current volatile global economy and financial troubles.
What is the risk of rising rates over the next 2 or 3 years, in a world of deflation.
Reductions in floating rates would reward borrowers who are taking the risk of floating.
It seems floating rates are quite fixed.
Your own charts at http://www.interest.co.nz/charts/interest-rates/daily-swap-rates show that swap rates have plummeted over the last three weeks - they are likely to go to record low levels as the current economic turmoil starts to kick in potentially setting off a GFC2.
These banks can afford to offer 3.99% for 2 years - instead they are choosing to keep the margins high and continue to make billions off their customers. Challenge them for a lower rate or threaten to move bank - they will most likely offer lower than the published rates.
One of the main banks is likely to offer a 3.95% or 3.99% two year rate within the next couple of months.
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