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The mortgage rate reductions keep coming with another bank pitching its latest change near the bottom of the range as wholesale rates droop

The mortgage rate reductions keep coming with another bank pitching its latest change near the bottom of the range as wholesale rates droop

This morning, BNZ has reduced its three year fixed home loan rate.

The reduction only applies to it's Classic rate, BNZ's fighting brand.

They have slashed the rate by -34 bps to 5.85% from 6.19%.

That gives them the lowest three year rate among the big banks.

The change has appeared on their website, and no announcement has yet been received from BNZ.

The bank as since advised that this is a limited time special that will end on October 31, 2014.

This new three year rate is however not the lowest for that term in the market; HSBC is still offering 5.75% to their Premier customers.

BNZ's move follows a general trend of lower mortgage rates over the past two weeks.

Following yesterday's lower-than-expected inflation rate for September, markets have bid down NZ swap rates.

However most observers - including the economists at BNZ - think the market has overdone that move and expect that local interest rate swap markets will rise when they open this morning.

See all banks' carded, or advertised, home loan rates here.

The current non-rate incentive offers are here.

This is how the updated mortgage rates will compare as at 8:00 am Friday, October 24, 2014:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.69% 6.25% 5.75% 6.09% 6.99%
ASB 5.70% 6.30% 5.75% 6.19% 6.99%
5.89% 6.25% 5.75% 5.85% 6.99%
Kiwibank 5.69%   5.89% 6.19% 6.79%
Westpac 6.09% 6.30% 5.75% 6.19% 6.49%
           
Co-op Bank 5.70% 5.89% 5.89% 6.19% 6.75%
HSBC 5.75%   5.75% 5.75% 6.99%
SBS Bank 5.85% 5.99% 5.99% 5.89% 6.79%
5.95% 6.05% 5.79% 6.30% 7.00%

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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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Fixed mortgage rates

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2 Comments

Mortgage rate reductions will be welcomed by NZ wage earning home owners.  

Hopefully they are not already fixed in the mid/high sixes based on the misleading predictions from economists on impending OCR hikes up to 5% by 2015 earlier this year.   

Even our relatively high interest rate policy will be difficult to maintain in the face of QE4 and ZIRP forever elsewhere.   

 

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