A new low home loan rate has been announced in the New Zealand mortgage market.
SBS Bank has this morning launched a two year fixed rate at 5.19%.
It is also available from HBS Bank.
This beats the previous market low from BNZ of 5.39% which only briefly starred as the market low.
You have to go back to May 2013 to find a lower two year rate. Back then a number of banks had rates sub 5%.
SBS Bank's new rate is for residential lending only and requires a minimum 20% equity.
The bank offers a non-rate incentive of up to $2,000 for all other mortgage lending but this is not available with the new 5.19% rate.
The 5.19% rate is for 'new lending' only; existing clients can roll over their loans at the other 'reduced rates' rates provided they have their salary paid directly into a transaction account with the bank, but they don't qualify for any cash incentive.
A minimum $100,000 loan is required.
Lending under the Welcome Home Loan program or for an Advance Reverse Equity mortgage does not qualify for either the low rates or the non-rate cash incentive.
In addition SBS Bank's standard two year standard rate has been reduced to 5.39%, their three year rate to 5.69% and their five year has been reduced to 5.99%.
Their one and three year 'special' rates remain unchanged at 5.59% and 5.49% respectively, but their five year 'special' has been reduced to 5.79% from 5.94%.
All these changes come into effect today.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how mortgage rates from the banks compare as at 9:00 am Monday, February 9, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.45% | 5.70% | 5.55% | 5.99% | 6.49% | 6.59% |
 |
5.59% | 5.70% | 5.45% | 5.59% | 5.99% | 5.99% |
 |
5.69% | 6.09% | 5.39% | 5.69% | 6.49% | 5.79% |
 |
5.69% | 5.55% | 5.89% | 6.39% | 5.89% | |
 |
6.09% | 6.30% | 5.79% | 5.89% | 6.79% | 5.99% |
| Co-op Bank | 5.59% | 5.49% | 5.59% | 5.74% | 5.99% | 6.25% |
 |
5.45% | 5.65% | 5.79% | 6.49% | 6.49% | |
| SBS Bank | 5.59% | 5.74% | 5.19% | 5.49% | 5.79% | |
 |
5.70% | 5.80% | 5.50% | 5.95% | 6.40% | 6.50% |
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Fixed mortgage rates
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Update: This story corrects an error in the 3 and 5 year changes from SBS Bank.
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