The National Bank is reducing its fixed home loan interest rates effective Monday, May 21, 2012 according to an email it sent to customers.
The same rates will apply to ANZ customers.
The key reductions are for their fixed eighteen month offer, which will fall to 5.55%, down 34 bps from 5.89%, and their two year rate which will fall to 5.49%, down 30 bps from 5.79%
These reductions will make their two year offer the lowest in the market, besting ASB's 5.55% offer for that term, and trumping TSB's Friday reduction to 5.50%.
ANZ-National's 18 month offer of 5.55% puts it on a par with Westpac who has the same rate, but both are beaten by the BNZ Classic offer of 5.10%.
ANZ-National is also reducing their fixed rates for terms 3 to five years, although the reductions for these terms still leave it with mortgage rates above the other banks.
You can find all current mortgage rate offers here ».
These latest falls continue the recent trend of fixed rates below the variable floating rate levels and, if there is no equivalent reduction in those floating rates, give borrowers the opportunity to make meaningful savings in their home loan payments, or allow them to pay off (deleverage) their loans faster.