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The challenger bank is the first to offer a 4.99% rate for 3 years, joining most others who have similar low rates for shorter fixed terms

The challenger bank is the first to offer a 4.99% rate for 3 years, joining most others who have similar low rates for shorter fixed terms

The pace of mortgage rate reductions is picking up.

SBS Bank are about to claim back a market-leading low-rate proposition by offering 4.99% for all terms from one to three years.

These new rates are 'special' and come with the usual conditions requiring at least 20% equity, the borrower's transaction account to be with SBS Bank, plus you need to take out at least one SBS Bank insurance product. And it is only for new residential lending of $100,000 and more.

They also apply to the HBS Bank brand.

The new one year rate involves a reduction of -60 bps from 5.69% down to their new offer of 4.99%.

Their new 18 month rate involves an even larger reduction, from 5.74% to 4.99%, a cut of -75 bps.

The new two year rate is a -36 bps reduction from 5.35% to the new offer of 4.99%.

And their new three year rate makes the same reduction to 4.99%.

This is the first time in this rate reduction cycle that a sub 5% rate has been offered for a three year term.

These latest changes either match or trump recent rate offers from ASB, Kiwibank, Westpac, and BNZ earlier today. BNZ's claim of the lowest three year rate has been very short-lived.

It is getting to the point where banks not offering sub-5% rates are the minority; now that is only ANZ, the Cooperative Bank, and TSB Bank. It seems likely they will move soon too.

Wayne Evans, SBS Bank CEO said he expects sub 5% rates to be the norm for the balance of this year given the OCR outlook.

Rate reductions for their term deposit offers were also signaled.

The new SBS Bank mortgage rates will compare as follows on Wednesday morning:

below 80% LVR Floating 1 yr 2 yrs 3 yrs 4 yrs 5 yrs
             
6.49% 5.39% 5.39% 5.59% 5.75% 5.79%
ASB 6.50% 4.99% 5.10% 5.39% 5.75% 5.65%
6.34% 5.19% 4.99% 5.29% 5.65% 5.75%
Kiwibank 6.40% 5.09% 4.99% 5.39% 5.75% 5.60%
Westpac 6.40% 5.49% 4.99% 5.59% 5.75% 5.79%
             
6.45% 5.15% 5.25% 5.35% 5.55% 5.69%
HSBC 6.60% 4.95% 4.95% 5.40% 5.50% 5.60%
SBS Bank 6.39% 4.99% 4.99% 4.99%   5.59%
6.49% 5.55% 5.29% 5.40% 5.85% 5.85%

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3 Comments

It still doesn't make $1.5m for a do-up in Central Auckland cheap.

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You could get 4.95% for 3 years and 5 years at 5.20% with ASB quite comfortably.

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Really? If this is true a name and number please so we can all take advantage of the best service in the industry at the lowest cost. Why would they, wait, they don't.

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