The latest reductions allow SBS Bank to claim the lowest home loan rate for all terms from 18 months to five years

The latest reductions allow SBS Bank to claim the lowest home loan rate for all terms from 18 months to five years

Just two days after having reduced some home loan rates, SBS Bank has launched another round of reductions.

It is now claiming the market-leading rate position for all terms from one to five years. (They do not offer a 4 year rate option.)

The scale of the SBS Bank changes are best seen in these tables.

The rates today are:

SBS Bank Variable 1 yr 18 mths 2 yrs 3 yrs 5 yrs
  % % % % % %
Residential 6.65 5.69 5.74 5.74 5.99 6.49
Special   5.59   5.49 5.69 6.19
Advance (Reverse equity) 7.85       7.19 7.69

Their rates at the beginning of this week were:

SBS Bank Variable 1 yr 18 mths 2 yrs 3 yrs 5 yrs
  % % % % % %
Residential 6.65 5.85 5.99 5.74 6.19 6.79
Special   5.75   5.49 5.89 6.49
Advance (Reverse equity) 7.85       7.19 7.69

Two weeks ago, their rates were:

SBS Bank Variable 1 yr 18 mths 2 yrs 3 yrs 5 yrs
  % % % % % %
Residential 6.65 5.85 5.99 5.99 6.19 6.79
Special       5.49 5.89  
Advance (Reverse equity) 7.85       7.19 7.69

In less than two weeks, SBS Bank has reduced both its standard rates and added new low rates for its 'special' offers.

Only HSBC has a lower rate in only one category, the one year fixed.

SBS Bank 'special' rates come with conditions, the main aspects of which are that a minimum equity of 20% applies.

There are no application fees at SBS Bank.

The conditions require customers to have their salary or primary income paid directly into a transactional account with the Bank, have at least one of a Lifestages KiwiSaver scheme,or an i-save account or term investment (minimum $1,000 deposit), or a personal loan offered by Finance Now, or insurance (income protection, home or life) offered by Southsure Assurance. You also need to have qualifying lending with a minimum of 20% equity.

Customers who qualify for a Special home loan offer get the low rates plus up to $3,000 as a cash incentive for loans of $250,000 or more.

SBS Bank rates are also applicable in branches branded HBS Bank which are mainly located in the Hawkes Bay.

These changes are effective today.

See all banks' carded, or advertised, home loan rates here.

The current non-rate incentive offers are here.

This is how the updated mortgage rates will compare as at 8:00 am Wednesday, November 5, 2014:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.69% 6.25% 5.75% 6.09% 6.99%
ASB 5.70% 6.30% 5.75% 6.19% 6.99%
5.89% 6.25% 5.75% 6.09% 6.99%
Kiwibank 5.69%   5.75% 6.19% 6.79%
Westpac 6.09% 6.30% 5.75% 6.19% 6.49%
           
Co-op Bank 5.70% 5.75% 5.75% 6.09% 6.75%
HSBC 5.39%   5.75% 5.99% 6.99%
SBS Bank 5.59% 5.74% 5.49% 5.69% 6.19%
5.70% 6.05% 5.79% 6.20% 7.00%

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2 Comments

Big deal.
Borrowing in order to buy a severly depreciating liability......although some would probably still call it an asset.
 
Personally, I'll leave that to others.

It's much 'less' than you think. All car loans - including those with SMEs - are done in a combination with the selling price of the vehicle. Yes, you can get a 'low' interest rate, but you won't get the best vehicle price. Or you can get the best vehicle price, but you won't get the low interest rate.
 
Vehicle and equipment loans are risk-priced. Toyota's 2.9% is 'subject to lending criteria'. I suspect only someone who has absolutely no need to finance a car purchase would get such a rate. If you need to borrow to buy you are likely to pay [much] more.
 
The real cost of car loans is likely to be still about 11% base on a 'secured' basis.