It has happened.
One bank has launched a fixed mortgage rate under 4%.
Today, SBS Bank has announced a one year fixed rate at 3.99% as a 'special'.
It is available for "new lending over $100,000", for residential "owner-occupier properties" only.
And borrowers will need to have at least 20% equity in the secured property.
SBS Bank's 'special' is being used as a promotional effort to launch the bank's new branding.
It will be available 'for a limited time'.
“The new special rate offered today is for a limited time and demonstrates SBS Bank’s commitment to continued lending growth in the residential sector, underpinned by our expanding reach across New Zealand. Through our branch network, our team of dedicated mobile mortgage managers, our customer contact centre and our digital presence, we are well placed to meet members’ needs nationally", said the bank's chief executive Wayne Evans.
This is the first time since the end of the Government subsides "State Advances Loan" era that any rate has started with a '3'. (Those old SALs were discounted to get veterans of World War two into housing and weren't exactly commercial.)
Borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater.
Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.
See all banks advertised, or carded, residential mortgage rates here.
These new fixed mortgage rates now compare across all banks as follows:
| below 80% LVR | 6 mths | 1 yr | 18mth | 2 yrs | 3 yrs | 5 yrs |
| % | % | % | % | % | ||
 |
5.15 | 4.35 | 4.95 | 4.49 | 5.10 | 5.35 |
 |
4.85 | 4.39 | 4.49 | 4.49 | 4.49 | 5.09 |
 |
4.99 | 4.35 | 5.09 | 4.39 | 5.19 | 5.35 |
 |
5.19 | 4.49 | 4.49 | 4.85 | 5.35 | |
 |
5.15 | 4.39 | 4.95 | 4.39 | 4.65 | 5.35 |
 |
4.99 | 4.35 | 4.49 | 4.49 | 4.85 | 4.99 |
 |
5.15 | 4.25 | 4.49 | 4.99 | 4.99 | |
 |
4.99 | 3.99 | 4.69 | 4.49 | 4.79 | 5.29 |
 |
5.29 | 4.35 | 4.69 | 4.39 | 4.79 | 5.35 |
In addition, BNZ has a fixed seven year rate of 5.75%, while TSB Bank offers a fixed ten year rate also at 5.75%.
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