The Co-operative Bank has a 'special' rate for first home buyers, one it had launched at 2.09%, fixed for one year.
Now it has cut that rate by -10 bps to just 1.99%.
It is 'special' because of its conditions. These are that it must be 'new lending' to the bank above $200,000, and the lending must be used by the applicants to purchase an Owner Occupied first home (as determined by the bank). A minimum 20% equity is required. But this offer is also available for Kainga Ora First Home Loans.
Only Heartland Bank's fixed one year rate is lower.
Coop Bank have also cut their six month fixed rate to just 2.19%, down by -6 bps, and their eighteen month rate by -6 bps to 2.39%.
Their rates for 3, 4 and 5 years are all increasing, basically to the benchmark levels the main banks have moved to recently.
The Coop Bank rate changes are effective, Thursday, June 17, 2021.
The lowest rate for any fixed term at any bank is still Heartland Bank's 1.85%. And the highest rate for any fixed term is ANZ's new five-year rate of 4.39%. That is the widest/steepest since 2012.
One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculators. (Term deposit rates can be assessed using this calculator).
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options.
Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at June 15, 2021 | % | % | % | % | % | % | % |
| ANZ | 3.39 | 2.19 | 2.35 | 2.59 | 2.99 | 3.99 | 4.39 |
 |
2.99 | 2.19 | 2.49 | 2.59 | 2.99 | 3.39 | 3.69 |
 |
2.99 | 2.19
 |
2.35
|
2.55 | 2.99 | 3.39 | 3.69 |
 |
3.55 | 2.19 | 2.55 | 2.99 | 3.39 | 3.69 | |
 |
2.99 | 2.25 | 2.45 | 2.59 | 2.99 | 3.39 | 3.69 |
| Bank of China | 3.45 | 2.15 | 2.15 | 2.55 | 2.75 | 3.05 | 3.35 |
| China Construction Bank | 4.70 | 2.65 | 2.65 | 2.65 | 2.80 | 2.89 | 2.99 |
| Co-operative Bank (*FHB only) | 2.19
|
1.99
|
2.39
|
2.59 | 2.99
|
3.39
|
3.69
|
| Heartland Bank | 1.85 | 2.35 | 2.45 | ||||
| HSBC | 2.79 | 2.19 | 2.19 | 2.45 | 2.69 | 2.99 | 3.19 |
| ICBC | 2.89 | 2.25 | 2.35 | 2.35 | 2.65 | 2.89 | 2.99 |
 |
3.39 | 2.19 | 2.39 | 2.49 | 2.79 | 3.09 | 3.39 |
[incl Price Match Promise]  |
2.89 | 2.19 | 2.35 | 2.55 | 2.99 | 3.39 | 3.69 |
Fixed mortgage rates
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9 Comments
Only high quality borrowers are eligible. The return of the money must be more important than the return on it.
The RBNZ must be exasperated:
Friedman pointed out the basic, non-trivial distinction between a liquidity effect and an income effect. Low rates can be stimulative in the short run (the liquidity effect), but over the long run their persistence means something far different. A yield curve is supposed to be upward sloping given the core time value of money and investing. That arises from opportunity cost, meaning the more plentiful the opportunities the greater the time value and the steeper the curve (the income effect). Yield and/or money curves (the eurodollar curve and even the history of the OIS curve) that collapse and remain that way unambiguously demonstrate that "stimulus" deserves only the quotation marks.
This must be the last ditch effort to pump the market and refill the punch bowl, I thought I had already seen it but the party continues. The problem gets pushed out for yet another year. The next election could be fun, cannot see the party lasting till after that.
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