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BNZ follows other banks, trims 2-year and 18 month mortgage rates as mortgage approvals tick higher

Posted in News December 2, 2010 - 08:37am, Gareth Vaughan

BNZ has followed in the footsteps of other banks and trimmed its two-year and 18 month mortgage rates.

BNZ has cut its two-year standard home loan rates by 5 basis points to 6.60% from 6.65% and dropped its classic 18 month rate by 10 basis points to 6.55% from 6.65% effective from today.

Banks have been reducing some fixed mortgage rates in recent weeks in efforts to spark the dormant housing market, which is supposed to be in its busiest season, back to life.

The latest moves by ANZ National and ASB to cut their 18 month and two year rates followed moves by Kiwibank, Westpac, TSB, SBS and others.

 
BNZ's move comes as the latest weekly Reserve Bank data shows the value and number of mortgage approvals hit their highest weekly totals since May last week.
There were 5,596 mortgage approvals in the week to November 26, valued at NZ$742.9 million. Both are at their highest since the week to May 21.
 

 

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