SBS Bank launches a 3.99% one year fixed mortgage rate, setting new low benchmark for home loan borrowers

SBS Bank launches a 3.99% one year fixed mortgage rate, setting new low benchmark for home loan borrowers

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
ASB 4.85 4.39 4.49 4.49 4.49 5.09
4.99 4.35 5.09 4.39 5.19 5.35
Kiwibank 5.19 4.49   4.49 4.85 5.35
Westpac 5.15 4.39 4.95 4.39 4.65 5.35
4.99 4.35 4.49 4.49 4.85 4.99
HSBC 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%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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Great bank, everyone a winner, oh wait a sec


A bank owed nearly $4 million by an Otago dairy farm is likely to be left more than $1.75 million short after receivers sold all of its assets.
Bank sells up dairy farm, left $1.75m short In March, Ngapara Dairies went into receivership after defaulting on loan and overdraft facilities to its bank, Southland Building Society.

William Hill Winery, first planted in 1973, was a victim of the recession and went into receivership in May 2009, owing $4.23 million to secured creditor Southland Building Society for property, stock and equipment.


One of the largest stonefruit operations in the country, Summerfruit Orchards Ltd, which owes $5.75 million, has been sold to a New Zealand buyer.
The company went into receivership in September, owing among its debts just over $4 million to SBS Bank.

Shock horror, a bank that has some loans go bad? Stop the press.

Stop the OBR

Why? why should I as a tax payer bailout bad lenders?

Why should a depositor bail out bad lenders? Depositors cannot even tell who's good and who's bad.

because as a tax payer you are encouraged to borrow and invest in property over save in a deposit account.

One no biggee, problem is there will be quite a few.

Ngapara Dairies - receivership in March 2015
William Hill Winery - receivership in May 2009
Summerfruit Orchards - receivership in Sept 2014

Not exactly all hitting at once...

Only the ones in the MSM

Whats your point Andrewj ?

As predicted by many.
Mortgages beginning with a 3.

OO only so hedging their bets

nah, just being smart: getting the good quality loans on their books to fatten their balance sheet. OO only, 20% liquidity.
What's not to like?
Might give them a ring, myself, my yearly fixed mortgage is coming up in 2 weeks time.

And deposits beginning with 3 or less, not really reflecting the OBR risk

so what do their existing customers get rolling for one year if you do not want to borrow an additional $100,000

They wait for another bank to match the offer and take their mortgages elsewhere when it comes up for renewal....

Never understood not giving existing customers access to the same deals. Probably because customers are sticky and don't bother moving. Will be moving 2M of lending from them in the new year due to unrelated poor service.

Agreed, the bank is essentially telling it's existing customers "you're not as important as our new customers". All bank do this, though. Same when the floating rates drop, it's immediate for new lending but existing customers generally have to wait for 2 weeks.
Funny, I'm with ANZ went to one of their seminars where they said, quote "look after your existing customers, it's 7 times harder to get a new customer than to keep a current one"

What in the article says that this is not available for existing customers? It is and they do not have to take out any further lending

new lending is quoted in article and on their website

I won't be surprised of a historic low of 3.59% within a year.

Just enquired:

need to switch transactional banking to them (have your salary paid into a current account with them), and also need to take out at least one insurance product with SBS.
Told them I'd think about it.