CBS Canterbury to lead market with 5.75% 1-year mortgage rate (updated)
28th Jan 09, 10:01am
CBS Canterbury told interest.co.nz they were introducing a special new one year mortgage rate at 5.75%. The new rate will be the lowest mortgage rate on offer in New Zealand, surpassing BNZ's previous market leading 5.95% for six-months. (Updated to include loan conditions) CBS Canterbury will join TSB, BNZ and Kiwibank as the only lending institutions in New Zealand offering mortgage rates below 6%. Others are expected to follow the downward trend with the Reserve Bank of New Zealand expected to cut the Official Cash Rate by at least 100 basis points to 4% or lower on Thursday. On Monday, Prime Minister John Key urged banks to pass the RBNZ's OCR cuts on to interest rates, saying: "They are the lubricant that allows the economy to keep operating." There are conditions that apply to the new rate. It is for new lending only, with an 80% loan to value ratio for owner-occupied homes and a 70% loan to value ratio for investment properties. The minimum loan will be NZ$50,000 with a maximum loan of NZ$500,000.