SBS Bank has trumped rivals by offering the lowest carded, or advertised, interest rate on a 3 year home loan.
The bank offers a 5.95% rate for that term.
Or you can choose $3,000 cash back instead, if you retain SBS' existing 6.25% rate.
Or, you can negotiate something in-between.
These changes come after both Kiwibank and ASB lowered their 2 year home loan rate offers at the end of last week.
SBS's 5.95% rate trumps HSBC's Premier special for that term.
These rate cuts come just three weeks before the June 14 review of the Official Cash Rate by the Reserve Bank, where it's widely anticipated the third 0.25% hike so far this year will be announced.
However, international money costs are stable or falling and those lower costs are flowing through to domestic swap markets enabling banks to source less expensive funding.
In fact, if the expected June OCR rise is all passed on to floating home loan rates, a number of banks may end up offering lower 3 year rates than their 3 year fixed rate.
This is true today for SBS, HSBC and TSB.
See all banks' carded, or advertised, home loan rates here.
This is how the new SBS rate compares:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.99% | 6.55% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 7.40% |
 |
5.85% | 5.99% | 5.95% | 6.25% | 7.40% |
| Kiwibank | 5.85% | 5.85%* | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 6.19% | 6.25% | 7.40% |
| Co-op Bank | 5.85% | 5.85% | 5.99% | 6.25% | 6.99% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.60% | 5.85% | 5.99% | 5.95% | 6.79% |
| TSB | 5.70% | 5.85% | 5.80% | 6.25% | 7.40% |
* only as part of their 60/40 'special' deal. Otherwise 6.19%.
--------------------------------------------------------------
Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
--------------------------------------------------------------
Fixed mortgage rates
Select chart tabs
2 Comments
As Olly Newland correctly foretold in his interview here on 14th March:
"It is therefore highly likely that there will be a break out of a further round of "mortgage wars" as banks vie with each other to attract borrowers.
For the next little while there will be some huffing and puffing but I am sure that "specials" will soon appear that will cut lending rates to close to what they were yesterday."
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.