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Both BNZ and Westpac announce small falls in mortgage rates, although none are market leading. Wholesale rates slip

Both BNZ and Westpac announce small falls in mortgage rates, although none are market leading. Wholesale rates slip

BNZ and Westpac have both reduced home loan interest rates.

But the changes are very minor - reductions of about -5 basis points only.

Westpac tweaked its 18 month fixed rate by -4 bps to 5.15% and its 2 year 'special' by -5 bps to 4.64%.

BNZ also made a very minor adjustment with its two year Classic rate, reducing it -4 bps to 4.65%.

They also cut their six month rate by -40 bps to a more market-friendly rate of 4.99%, matching ASB.

None of these changes by either bank are market leading - you have to wonder why they bothered.

You can find a review of where market-leading rates have settled to, here.

The substantial drop in benchmark yields in New York over the weekend will add to the soft tone in New Zealand wholesale swap markets which opened this morning -1 bp lower.

So it is clear that further reductions are still possible.

Borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater. Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.

See all banks advertised, or carded, residential mortgage rates here.

The new floating and fixed mortgage rates now compare across all main banks as follows:

below 80% LVR Floating  1 yr  18mth  2 yrs   3 yrs   5 yrs 
    % % % % %
5.99 4.49 5.09 4.65 5.25 5.49
ASB 6.00 4.35 4.69 4.69 4.79 5.09
5.89 4.35   4.65 5.19 5.65
Kiwibank 5.90 4.49   4.59 4.85 5.35
Westpac 6.00 4.99 5.15 4.64 5.19 5.65
             
5.95 4.69 4.79 4.59 4.99 5.49
HSBC 6.35 4.49   4.49 4.49 5.29
5.89 4.69 4.69 4.69 4.99 5.59
5.99 4.55 4.69 4.49 4.79 5.50

Mortgage rates

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