BNZ has cut its carded, or advertised, floating home loan rates by up to 40 basis points and its farm first overdraft rate by 25 basis points.
The move comes after the Reserve Bank yesterday cut the Official Cash Rate by 25 basis points to 3.25%, prompting ASB, Kiwibank, ANZ and the Co-operative Bank to drop their floating home loan rates by 25 basis points.
BNZ said it's cutting the rate on its TotalMoney floating home loans to 6.34% from 6.74%, and the rates on its standard variable, rapid repay and mortgage one products by 25 basis points. It's also cutting the rate on its farm first overdraft by 25 basis points, dropping it to 9.45%.
Its standard variable rate is now 6.49%, its revolving credit rapid repay rate is now also 6.49%, and its mortgage one rate is now 6.90%. BNZ says the majority of its floating rate home loan borrowers are on TotalMoney loans.
BNZ's changes take effect from June 28 for existing customers, and from tomorrow - June 13 - for new customers.
"The cut to our TotalMoney rate is deliberately greater than the decrease in the official cash rate. The Reserve Bank has indicated another rate cut is on the cards and we're boldly anticipating that change with this competitive rate cut," said BNZ retail banking and marketing director Craig Herbison.
The cut to the farm first overdraft rate is due to extra pressure being experienced by farmers, Herbison said.
BNZ said it won't be changing term deposit rates.
See all banks' carded, or advertised, home loan rates here. And see more on banks' floating and variable mortgage rates here.
This is how mortgage rates from the banks compare at Friday, June 12, 2015:
| below 80% LVR | Floating | 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
6.49% | 5.59% | 5.39% | 5.59% | 5.75% | 5.79% |
 |
6.50% | 5.35% | 5.39% | 5.39% | 5.99% | 5.65% |
 |
6.34% | 5.35% | 5.39% | 5.49% | 5.65% | 5.75% |
 |
6.40% | 5.39% | 5.39% | 5.39% | 5.99% | 5.60% |
 |
6.59% | 5.25% | 5.39% | 5.39% | 5.75% | 5.79% |
 |
6.45% | 5.29% | 5.39% | 5.49% | 5.69% | 5.69% |
 |
6.84% | 5.20% | 5.30% | 5.40% | 5.50% | 5.60% |
| SBS Bank | 6.65% | 5.59% | 5.35% | 5.35% | 5.35% | |
 |
6.74% | 5.55% | 5.29% | 5.40% | 6.40% | 5.85% |
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