The Co-operative Bank trims 3 and 4 year mortgage rates; CEO says customers want longer term loans not the short term ones other banks are pushing them towards

The Co-operative Bank trims 3 and 4 year mortgage rates; CEO says customers want longer term loans not the short term ones other banks are pushing them towards

The Co-operative Bank has trimmed 10 basis points off both its three and four-year mortgage rates giving the bank the lowest carded, or advertised, four-year rate currently on offer from any NZ bank.

The bank's three-year rate is being cut to 4.75% from 4.85% and its four-year rate to 4.89% from 4.99%.

The move comes a day after rival SBS Bank introduced a headline grabbing 3.99% one-year rate

Announcing the reductions to his bank's three and four year rates, Co-operative Bank CEO Bruce McLachlan noted "many" other banks were enticing customers to take shorter-term mortgages. 

"However, we are seeing the market indicate that home buyers want to secure attractive rates for their home loans on a longer-term basis. We put our customers before profits, and our focus is solely on what’s best for them. We believe that reducing long-term fixed home loans rates is absolutely the best thing to do for our customers," said McLachlan.

Co-operative Bank's new four-year rate is the lowest from a bank. However at 4.49%, ASB has the lowest three-year rate although ASB customers require equity, or a deposit, of at least 20%. See all banks' carded, or advertised, residential mortgage rates here.

All Co-operative Bank's fixed-term rates are below 5% with McLachlan saying "many" customers are choosing the 4.99% five-year rate. The new rates are available to new and existing Co-operative Bank customers from November 25.

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?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

1 Comments

Comment Filter

Highlight new comments in the last hr(s).

so customers are willing to pay more for more certainty, these must be long term OO that have been around before 2008