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Competition heats up for sub 80% LVR loans with more rate reductions, this time by Westpac

Competition heats up for sub 80% LVR loans with more rate reductions, this time by Westpac

(Updated with information on the HSBC one year rate.)

This morning, Westpac has matched BNZ with two new home loan 'specials'.

Westpac have reduced their one year <80 LVR rate to 4.95% from 5.15%.

And they have introduced a new three year 'special' rate of 5.99%.

Both changes are the same as those announced by BNZ yesterday, and expand the number of banks offering sub 5% and sub 6% mortgage rates.

With reports of less first home buyer activity in the market, banks are now having to compete fiercely for existing home loan borrowers and are focusing their offers on <80% LVR business.

However, first home buyers still have a substantial option available by using the Government's Welcome Home Loan product which is excluded from the RBNZ speed limit restrictions.

Westpac is one of five banks qualified to offer this product. (It is not offered by rivals ANZ, ASB or BNZ.)

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 4.95% 5.75% 5.59% 5.99% 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%

*Update: HSBC will be ending its one year Premier Special as at the end of business today - November 20. It will be replace by a new regular rate of 5.10%.


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 Release The Kraken!

I mean Graeme Wheeler !!!

Keep the cuts coming.
Where are the rate rises, so boldly predicted?

How does banks playing with their margins for market share reasons make any difference to the view on rate hikes or cuts to anyone who remotely understands interest rates. Totally irrelevanrt

Rember what  I'm saying:
The rate will stay low until $ finds an asset that it can blow a bubble on, globally.

I think it's already found one xingmowang, the global bond market. It's slowly starting to exit that over the past 6  months.....but only slowly until it bursts properly then not so the meantime what the Fed does or doesn't do with the US Fed funds rate will have minimal/no material influence on our OCR as compared to what the US long rates have, and will further have, over our long rates.

And this is why the LVR shuts out the FHB and new folk.
The lower risk & effect on the bank portfolio means the entrenched property mogul can pick cheap credit for new aquisitiions,  but the new entrant isn't even allowed to ante up.

Fantastic news my 8.6% fixed mortgage that I have been getting stung for over the last few years is out in June 2014 so keep the cuts on coming !

I share your joy Carlos.  Mine runs out on Tuesday.
Mind you it's not all so bad.  It's been useful to have that one at low interest rate risk while over the past three years I have firmly eliminated all other debt.   Interest rates can triple for all I care with no stress to me. 
And sometime next year.  Will be paying no interest at all.  !  And no risk.

ouch thats brutal - did you consider breaking?

If you think that rates are going down, check out the break options.

If the variable rate is almost what you are on now or there's only a few months running then it won't cost much to break.   If you can break to a variable rate, then you can refix at anytime (check for fixing/application fee)

Usual disclaimers apply (not your financial advisor, not qualified to give financial advice, information is not specific to your particular case, advise you to seek independant expert assistance on hte matter.)

Carlos, why did you not make a decision to break long ago? Think of the break fee as an investment for an improved cashflow in the future.
(People get so hung up over break fees, yet the return on the fee will most times be better than the return on the same amount of money in a bank account, and the tax angle makes the return even better.)

NZers are useless when it comes to real money planning.  It's fixed so it stays fixed, and they'll just sit there, until an emotional moment makes them jump in a random direction.

That's why we've got the crazy crowd who will pay rent until they can buy a house with immediate positive cashflow.

The thought/emotion connected with the idea they might be losing anything just freezes them (or panics them).  Thus they get overrun everytime by those with a more reasoned outlook.

Dont count your chickens - this offer is to entice those in the short term, when in reality they will rise, mid term

hi all,
I have been offered 2 years fixed 5.5%. I am thinking of taking this offer from my bank.
What do you guys suggest?

depends on your profile however if you have >20% with good income should be looking at low fives for 2-3 years

Two years ain't fixing a mortgage... it's like a slow-adjusting floating rate. I suggest you fix for longer.

Thanks speckles.
That is really the best offer my existing bank is willing to go for.  We are on >20% and looking at the advertised rates, 5.5 looks good to me.
i did think of talking to other banks, however mine is a construction loan and I have an option to fix it for 6 months and then relook at it in April. However, I don't think 5.5% wiil be really an option in April 2014, given what we hear about rates rising.

Rates are going nowhere in a hurry. 
Best not fix for too long. 
Customers are negotiating successfullu for rate discounts sub 5.
People are even successfully asking for rate discounts on personal loans. 
Banks & finance cos are still very keen to sell you the loan of their money - that price is not going up. 
Credit card interest rates will be next to be negotiable  .

I am glad I went with my 5.5 offer last week

Days to the General Election: 26
See Party Policies here. Party Lists here.