BNZ cuts both mortgage rates and term deposit rates, lowering rates across a wider range of terms and leaving a few majors with rate levels higher than their main rivals

BNZ has followed ANZ and Westpac, cutting one and two year fixed rates.

Actually, they have only cut their Classic 'special' rates, widening the premium to 'standard' rates.

But they have gone further and matched Kiwibank and adopting 3.99% as their rates for three, four and five years fixed.

BNZ is the first Aussie major to do that and the first to have sub 4% rates for all fixed terms from one to five years.

But they haven't cut their six month, eighteen month, or unique seven year home loan rates.

'Classic' fixed rates are only available when a customer has at least 20% equity in the property provided as security. For residential property investors, more equity may be required where Reserve Bank minimum equity restrictions apply. A BNZ transactional account with the customer’s salary or wages credited and one other product is required. BNZ is now one of the few banks requiring "one other product" as a condition for 'specials' with Westpac having dropped that condition recently.

The BNZ move leaves ASB as the only major with a 3.65% one year rate, and with Kiwibank, the only major with 3.49% for two years fixed. No doubt they will fall in line soon.

With rising real estate volumes and higher house prices to chase, it is game on in both the real estate and mortgage markets.

And it is a market move up that seems to be being led by Auckland.

Spring has become infectious.

But it is also bringing lower term deposit rates, and BNZ has matched today's lower mortgage rates with lower term deposit rates. By not cutting mortgage rates (yet), ASB remains one of the few banks to offer 2.80% TD rates for terms under one year.

Until about a week ago, wholesale swap rates had fallen to record low levels. But in the past week they have started rising, with the benchmark two year swap rate up more than ten basis points in that time.

The lowest rates in New Zealand at present are offered by Chinese banks who have a retail presence here.

Our table below presents carded rates. If you have received real rate offers lower than these, please note them in the comment section below and what bank is involved. A note about related cash-backs or other incentives would be good too.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at October 15, 2019	%	%	%	%	%	%	%
ANZ	3.65	3.55	3.99	3.45	3.99	4.85	4.95
	4.29	3.65	3.75	3.49	3.89	4.19	4.29
	4.79	3.55	4.55	3.45	3.99	3.99	3.99
	4.79	3.55		3.49	3.99	3.99	3.99
	4.99	3.55	4.79	3.45	3.99	4.35	4.45
Bank of China	3.99	3.15	3.70	3.15	3.79	4.35	4.45
Co-operative Bank	3.49	3.49	3.59	3.59	3.89	3.99	4.09
China Construction Bank	4.70	3.19		3.19	3.19	4.95	4.95
ICBC	4.29	3.18	3.18	3.18	3.20	3.99	3.99
	4.65	3.35	3.35	3.35	3.35	3.35	3.35
	4.29	3.65	3.69	3.59	3.99	4.49	4.49
	4.35	3.69	3.69	3.59	4.05	4.45	4.55

In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here. And term PIE rates are here.