Sister banks SBS and HBS, which are also building societies, have cut their three and five-year home loan interest rates with both now the lowest rates advertised by any bank.
SBS Bank and HBS Bank, the former Hastings Building Society which is now an operating division of SBS, have cut their five-year rate by 70 basis points to 6.20% from 6.90% and introduced a special to members with all their banking with either SBS or HBS and loan-to-valuation ratios within 80%, of 5.99%.
Both rates are lower than any other five-year rate advertised by a bank. SBS and HBS have also cut their three year mortgage rate by 25 basis points to 5.85%. from 6.10%, with the new rate also the lowest three-year one advertised by a bank. They've also introduced a 5.65% 24-36 month special to borrowers with LVRs within 80%.
The cuts come after big recent falls in swap, or wholesale, rates that banks borrow at. The three-year swap rate is down 24 basis points since April 30 to 2.69% and the five-year swap rate is down 21 basis points over the same time period to 3.17%, its lowest point this year.
See all bank advertised home loan rates here.
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1 Comments
Ignore published rates - most banks will do deals well under published rates. 5.99% for 5 years fixed is actually not a bad rate, historically, but it is a way to early to fix as 3 and 5 years swap rates will keep falling through 2012 and the OCR will be cut by at least half a percent during 2012.
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