Hard on the heals of the Co-op Bank reducing its two year fixed rate last week, it has now reduced two more home loan rates.
Its four year mortgage rate is now 6.75%, 10 bps lower than the old 6.85% rate.
Its five year rate is now 6.89%, also down 10 bps from 6.99%.
These new rates line it up with Westpac's latest rates, or are better.
Whereas the Westpac rates are 'specials' and with conditions, the Co-op Bank rates are standard offers.
At the same time, the Co-op Bank has reduced its standard term deposit rates for terms of 18 months through to 4 years.
For 18 months, the new rate for a term deposit of $10,000 of more is now 4.70%, down 10 bps from 4.80%.
For two years, the new 2 year TD rate is 4.85%, down 20 bps from 5.05%.
The three year TD rate is now 5.10%, down from 5.30%, and the four year rate is now 5.35% down from 5.55%.
Given that wholesale rates had been declining steadily in May, these reductions make sense from a wholesale cost-of-funds perspective.
These are the first rate reductions in June.
Next week on June 12 the RBNZ will review the OCR again and a third consecutive +0.25% is anticipated by the markets. But of more importance will be the Monetary Policy Statement and related briefings which will set the scene for the rate change track for the rest of 2014. Observers are expecting a softening of the RBNZ view.
See all banks' carded, or advertised, home loan rates here.
This is how the new Co-op Bank mortgage rates compares:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.85% | 6.55% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.99% |
| Kiwibank | 5.85% | 5.85%* | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 5.85% | 6.25% | 6.89% |
| Co-op Bank | 5.85% | 5.85% | 5.85% | 6.25% | 6.89% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.70% | 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%.
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5 Comments
Under 5% - 1 year fixed in Australia
http://mozo.com.au/interest-rates/home-loan-rates
Banks will need to keep their rates low in order to keep borrowers borrowing.
Working in a bank, the problem I see is that the TD/Investment rates aren't rising in step with lending rates.
The banks are preferring to keep their margins up (or extending them) while they can at the cost of the savers.
It's like the casino, the house always wins.
Rigged much?
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