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BNZ lops 40 basis points off advertised 3-year mortgage rate for borrowers with 20% equity

Personal Finance
BNZ lops 40 basis points off advertised 3-year mortgage rate for borrowers with 20% equity

BNZ is knocking 40 basis points of its key three-year carded, or advertised, home loan interest rate from tomorrow (January 15).

The bank is reducing its "Classic" three-year fixed home loan rate to 5.59% from 5.99%. That'll make it the lowest advertised three-year rate from any bank. 

Borrowers will require at least 20% equity in their property - or a minimum 20% deposit - to be able to obtain the new BNZ three-year rate. They must also have a transaction account with BNZ that their salary or wages are paid into.

Borrowers not meeting these criteria face a 6.29% advertised three-year rate from BNZ, and a low equity interest rate premium if they don't have 20% equity.

The BNZ home loan rate cut is the third reduction from a major bank so far this week with Kiwibank cutting 20 basis points from its two-year fixed rate on Monday, dropping it to 5.55%.

ASB also matched the BNZ move.

BNZ also unveiled a range of term deposit rate cuts on Monday.

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 Monday, January 19, 2015:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 4 yrs 5 yrs
             
5.59% 5.70% 5.75% 5.99% 6.49% 6.59%
ASB 5.59% 5.70% 5.75% 5.59% 5.99% 6.49%
5.69% 6.09% 5.75% 5.59% 6.49% 6.59%
Kiwibank 5.69%   5.55% 5.89% 6.39% 6.49%
Westpac 6.09% 5.75% 6.39% 5.99% 6.79% 6.49%
             
Co-op Bank 5.69% 5.75% 5.75% 5.99% 6.40% 6.49%
HSBC 5.45%   5.65% 5.99% 6.49% 6.79%
SBS Bank 5.59% 5.74% 5.49% 5.69%   6.19%
5.70% 5.90% 5.70% 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 AMP mortgage broker can be contacted by following this link »
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Fixed mortgage rates

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4 Comments

Good news for home loan borrowers. 

If you are currently floating or about to come off a short term fixed, then it may pay to wait and look around as all banks and fixed rates will be dropping to try to regain market share and try to resurrect home loan volumes. 

Banks are sitting on a lot of cash. -  they need to get it loaned out. 

Fixed rates are available in Australia for around 4.8% 

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And we can all see how 2015 is going to kick off in the housing market.

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NZHerald this morning: 40 young workers/ students waiting outside Rental house viewing times.

 $800 a week for 4 bed central houses.  

No lack of deemand for accommodation.  

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We get these stories for NZ Herald every year..same same , they just dust them off. House behind Eden Park has been for rent for 3 weeks and still sign out? Maybe My Landord can update us on his price increases and demand?

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