New one and three year fixed mortgage rates for less than 80% LVR now lowest in market, best of main banks

New one and three year fixed mortgage rates for less than 80% LVR now lowest in market, best of main banks

(Updated with details of a one year drop as well.)

BNZ has shifted its home loan rates this morning, challenging its rivals with a sub 5% one year rate and a sub 6% three year rate.

It has effectively reduced its 1 year fixed rate by introducing a Classic rate of 4.95%. This is 44 bps below their Standard/FlyBuys/GlobalPlus rate of 5.39%.

This 4.95% reprises the same 1 year Classic rate that last ended on June 21, 2013.

It has ended its market-leading 18 month rate, reverting to a more standard 5.80%, up 41 bps for its Classic home loan from 5.39%.

However, it has dropped its three year fixed rate for its Classic product to 5.99% from 6.29% and making that rate the best of the main banks for this term and the best-equal with SBS.

There are now four sub 5% rates in the market, from ANZ (6 mths), BNZ, HSBC and Co-op Bank.

BNZ's Classic home loans require an LVR of less than 80%.

It has also reduced its <80 LVR Standard/FlyBuys/GlobalPlus fixed three year rates to 6.40%, down 10 bps from 6.50%.

And it has reduced its Standard/FlyBuys/GlobalPlus fixed five year rates to 6.99%, down 11 bps from 7.10%.

Similar reductions apply for those products that have an LVR of over 80%, although pricing is higher by 50 bps across all terms.

See all carded, or advertised, bank home loan rates here.

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.19% 5.59% 5.95% 6.50% 7.10%
ASB 5.15% 5.65% 5.59% 6.40% 6.99%
BNZ 4.95% 5.80% 5.95% 5.99% 6.99%
Kiwibank 5.25%   5.65% 6.40% 6.90%
Westpac 5.15% 5.75% 5.59% 6.50% 7.10%
           
Co-op Bank 4.99%   5.59% 6.20%  
HSBC 4.75%   5.65% 6.35% 6.99%
SBS / HBS 5.20% 5.45% 5.45% 5.99% 6.55%
TSB 5.40% 5.40% 5.85% 6.45% 7.00%

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2 Comments

Cuts, cuts, cuts...
As the 5% deposit market dries up, go after the existing mortgage holders at the opposition banks.

5.99% for 3 years fixed should send a fresh surge of confidence through the property market