Kiwibank has advised that its 3.99% one year fixed home loan 'special will end this weekend.
This rate has been available from Monday, August 20, so the 'special' period has only been two weeks.
On Monday, the rate will revert to 4.19%, the same as it was before it was dropped. Their standard rate will also rise to 4.69%.
This change will mean that only HSBC Premier offers any rate below 4%.
Over that period, the wholesale swap rate for a one year duration has moved down from 1.98% to 1.93%, a -5 bps reduction, most of which has come in the past 24 hours.
In fact, there is downward pressure on wholesale rates across the curve even if today we are seeing a minor +1 bp firming.
See all banks' carded, or advertised, home loan interest rates here.
Here is the full snapshot of the fixed-term rates on offer from the key retail banks.
below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
as at August 31, 2018 | % | % | % | % | % | % | % |
4.99 | 4.29 | 5.15 | 4.49 | 4.85 | 5.85 | 5.99 | |
4.95 | 4.29 | 4.39 | 4.49 | 4.79 | 4.95 | 5.59 | |
5.35 | 4.29 | 5.05 | 4.49 | 4.85 | 5.89 | 6.09 | |
4.99 | 4.19
|
4.39 | 4.85 | 5.19 | 5.39 | ||
5.25 | 4.29 | 5.15 | 4.49 | 4.85 | 5.89 | 4.99 | |
4.80 | 4.24 | 4.45 | 4.49 | 4.85 | 5.39 | 5.59 | |
4.85 | 3.99 | 3.99 | 4.19 | 4.69 | 4.99 | 5.29 | |
4.99 | 4.19 | 4.49 | 4.49 | 4.85 | 5.39 | 5.55 | |
4.85 | 4.24 | 4.29 | 4.29 | 4.85 | 5.55 | 5.69 |
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB still has a 10-year fixed rate of 6.20%.
20 Comments
Yes and no. Banks should absolutely match other banks in most instances, but i have seen plenty of cases where they flat out decline (for example the big 4 dont generally match HSBC's sub 4% offers). I hear plenty of case of staff at a particular bank, getting a better deal at another bank, and their employer not matching it. But the general thrust of your comment, that banks should match is something people do need to be more concious of.
Banks will only 'match' etc these days IF a review of the relationship measures up to new guidelines. Try getting '3.99%' if you have 10% LVR for instance! (Many borrowers still do; a legacy of past lending, and in those cases 'letting sleeping dogs lie' works on both sides of the loan!). The risk with all present renegotiations is that the bank will 'ask' the borrower to bring the loan(s) more into line with current guidelines.
lol TSB wouldn't match, so I switched to Kiwi bank at 3.99% + they used their layers so no legal fees + they gave me $1500 cash - overall interest savings from what i was on is 1500$ for the term so im up 3000$ for the move :D + i borrowed a extra 1500$ for fun , but im on 52% equity.
Westpac Australia starting to raise mortgage rates. How connected are we to the trends there?
https://www.bloomberg.com/news/articles/2018-08-29/westpac-becomes-firs…
I'm sure the Ozzy banks realize that when the property market is dropping that they need to ease their rates. Though prices still very high in most Australian cities though at least they have much better wages then ours to support those high prices.
Problem is we have almost the equivalent high property prices without the wages to support those high mortgage costs.
Article: The huge salary you need to earn to buy a home in Australia
https://www.news.com.au/finance/real-estate/buying/the-huge-salary-you-…
I'm not entirely sure if that will be case. It would be a desired outcome to relieve the pressure of default on those that have over leveraged, however what has to be considered is the funding gap that the banks fill with overseas borrowing of their own. If the Aussie dollar and Kiwi continue to fall, which I believe they will then the price of international borrowing may lead to rate increases as we have seen with Westpac Australia's recent rise in their floating rates. It could go either way still but I do think that credit will become more of a beauty parade when being offered to households. The better looking will get the better rates!
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