TSB Bank trims 3, 4, and 5 year advertised home loan rates by 15, 10 and 35 basis points, respectively

TSB Bank has cut three, four and five-year fixed-term home loan rates by 15, 10 and 35 basis points, respectively.

TSB says it has cut its three-year rate to 6.10% from 6.25%, its four-year rate to 6.50% from 6.60% and its five-year rate to 6.90% from 7.25%. The changes are effective immediately.

The cuts bring TSB in line with rates being advertised by most other banks, although the-Cooperative Bank, formerly PSIS, continues to have the lowest advertised four-year bank rate at 6.45%. See all bank advertised home loan rates here.

The TSB cuts come with swap rates having fallen overnight, with the three year rate down 6 basis points to 3.32%, four-year down 6 basis points to 3.55% and five-year down 7 basis points to 3.76%. The Reserve Bank is due to review the Official Cash Rate, currently at a record low of 2.5%, tomorrow.

Westpac chief economist Dominick Stephens last week suggested it was time for floating rate mortgage borrowers to fix before interest rates went up. And Roger J Kerr, Asia-Pacific Risk Management director, this week also said borrowers would be well advised to fix.

At the end of January 61.7%, or NZ$105.687 billion of the total NZ$171.267 billion worth of home loans were on floating, or variable, rates, according to Reserve Bank figures. That's the highest proportion floating since the central bank's records began in June 1998.