On Monday, SBS Bank launched some market-leading home loan rates, only to be trumped by BNZ.
Today they are back to claim that space again.
Today, they have announced a 4.35% fixed rate for both an 18 month term and a 2 year term.
These two reductions now match their one year term, and both new rates are market-leading.
All three 4.35% rates are 'special' in that borrowers need to have a minimum of 20% equity if they plan to live in the property, but will need 30% equity if the property is an Auckland renter.
New SBS Bank clients also must bring new lending of at least $100,000 and commit to at least one SBS insurance product as well.
(The offer is available to existing SBS Bank clients without some of the conditions.)
Westpac also changed one of its home loan rates today. Actually, it is the third tweak it has made to its 2 year 'special' in the past few days. It started out with a 4.35% rate, raised it by +8 bps on Monday to 4.43%, and then cut to by -4 bps to 4.39% today. The point of such small moves is hard to see, but their 2 year 'special' rate now matches BNZ and TSB Bank. They were probably surprised by the Monday move by BNZ.
Update: ANZ has today raised its one year rate, up +4 bps to 4.39%. This change removes its carded rate advantage over its main rivals for a one year term.
Across the 1-5 rate curve, there is now a spread of less than 1%.
Shallower rate curves are also a feature of wholesale markets.
Mortgage rates now compare across all banks as follows:
| below 80% LVR | 1 yr | 18mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | |
 |
4.39 | 4.95 | 4.49 | 5.10 | 5.25 | 5.35 |
 |
4.39 | 4.49 | 4.49 | 4.75 | 5.15 | 5.25 |
 |
4.39 | 5.09 | 4.39 | 4.49 | 5.40 | 5.50 |
 |
4.49 | 4.49 | 4.85 | 5.25 | 5.35 | |
 |
4.39 | 4.95 | 4.39 | 4.80 | 5.25 | 5.35 |
 |
4.39 | 4.49 | 4.49 | 4.75 | 4.99 | 5.15 |
 |
4.25 | 4.49 | 4.99 | 4.99 | 4.99 | |
 |
4.35 | 4.35 | 4.35 | 4.65 | 5.29 | |
 |
4.35 | 4.69 | 4.39 | 4.79 | 5.35 | 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%.
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