On Monday following this long weekend we will start with a small flurry of fixed mortgage rate changes.
All of them are reductions.
Co-operative Bank kicked off the latest round reducing its 18 month offer -10 bps to 5.49% which is a market leading rate for this term. Co-op's rates are all standard, without 'special' conditions.
TSB Bank followed with a -20 bps drop for its two year 'special' rate to 5.50%, a -20 bps drop to its standard three year rate to 6.00%, and a -10 bps drop to its 18 month rate to 5.80%.
They in turn were followed by ASB and cousins who dropped their standard 18 month and two year rates to 5.99% and their 'special' two year rate to 5.45% which was a -20 bps reduction.
The BNZ chimed in with reductions to its 'Classic' 2 year rate, announcing a 5.39% level. It also added a new 'Classic' rate for a five year term of 5.79%.
These two BNZ changes have them claiming the lowest carded rate in the market for both terms, 2 years and five years.
Then TSB Bank jumped back into the limelight announcing a unique 5.89% rate fixed for ten years. This is the first time a ten year fixed home loan rate has been available to residential and property investor borrowers.
Finally, we have received information of reductions in fixed rates from another bank but those details are embargoed until Monday so you will need to check back then.
All of these changes are possible because wholesale rates have been sinking recently. You can get an idea of the scale of these recent wholesale changes by checking our swap rate charts.
Term deposit offers have also been sinking.
Banks seem to be shifting their focus back to a sharp rate and downplaying their non-rate cash and other incentives. But most still have those non-rate incentives still in place.
Any rate above 6% is now rare and uncompetitive. The lowest rate over any term is now BNZ's 5.39% 'Classic' two year offer.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how mortgage rates from the banks will probably compare as at 9:00 am Monday, February 9, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.45% | 5.70% | 5.55% | 5.99% | 6.49% | 6.59% |
 |
5.59% | 5.70% | 5.45% | 5.59% | 5.99% | 5.99% |
 |
5.69% | 6.09% | 5.39% | 5.69% | 6.49% | 5.79% |
 |
5.69% | 5.55% | 5.89% | 6.39% | 5.89% | |
 |
6.09% | 6.30% | 5.79% | 5.89% | 6.79% | 5.99% |
| Co-op Bank | 5.59% | 5.49% | 5.59% | 5.74% | 5.99% | 6.25% |
 |
5.45% | 5.65% | 5.79% | 6.49% | 6.49% | |
| SBS Bank | 5.59% | 5.74% | 5.19% | 5.49% | 5.79% | |
 |
5.70% | 5.80% | 5.50% | 5.95% | 6.40% | 6.50% |
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP360 mortgage broker can be contacted by following this link »
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