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BNZ launches a two week mortgage special with a market-leading rate for 18 months; also lowers GlobalPlus rate for the same term
Corrected:
BNZ has introduced two new low home loan rates for 18 month fixed terms.
The Classic rate is now 5.19% and sits beside the existing 2-year fixed Classic rate of 5.40%.
At the same time, BNZ has added an 18 month fixed rate for its GlobalPlus product of 5.50%.
The 18 month Classic rates is available to everyone, unlike their 2 year Classic offer which requires a minimum of 20% equity by the borrower.
The Classic product requires customers to have at least 20% equity in their home.
This latest offer ends on March 8, 2013.
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This rate compares as follows:
| 1 year | 18 mths | 2 years | |
| ANZ | 5.25% | 5.49% | 5.39% |
| ASB | 5.45% | 5.45% | 5.45% |
| BNZ | 5.25% | 5.19% | 5.40%+ |
| Co-op Bank | 5.25% | 5.35% | |
| HSBC Premier | 5.25% | 5.39% | |
| Kiwibank | 5.25% | 5.25% | |
| SBS / HSB | 5.25% | 5.30% | |
| TSB* | 5.25% | 5.40% | 5.30% |
| Westpac | 5.25% | 5.40% | 5.40% |
* TSB also has a 15 month Special of 4.95%, still the second lowest rate on offer in the New Zealand mortgage market. Kiwibank has the lowest fixed rate, 4.79% for six months fixed.
+ This is a Classic rate that requires a minimim 20% equity.
(This update corrects the minimum equity conditions applying to BNZ's Classic rates.)
3 Comments
Do they want the Floaters
Do they want the Floaters back on fixed rates to lock them in & reduce the risk of changing banks?
What is the likelihood of floating rates to hike significantly, given global conditions (let alone NZ conditions?)?
What is the risk of being locked in for 18 months, then halfway into the 18 months rates start rising, but you can't re-fix until the 18 month term is up? Maybe it would be better to sit on the fence & wait.
Bit risky as they are more
Bit risky as they are more likely to drop rates within 6 months of signing up for an 18 month term. Don't be fooled by these rates - they will do deals well below the published rates.
Yes they want to lock you in,
Yes they want to lock you in, limited property listings, low loan growth, market share is all they have to play for. Should aim for a average rate around 5%, many are still paying 6% plus floating or with a .25 discount. While the herd is prepepared to pay carded rates floating will not reduce materially.