TSB Bank has cut a key mortgage rate.
According to the bank's website, it's pricing its fixed two year 'special' at 4.29%, down -10 basis points from 4.39%, effective Friday (January 22).
This is the lowest carded two year rate on offer from a bank.
TSB hasn't changed any other rate.
For the two year term, it has pipped SBS Bank by -6 bps, and the most competitive main banks (BNZ and Westpac) by -10 bps.
The TSB Bank conditions have an upper LVR limit of 80%, meaning borrowers need a deposit or equity of at least 20%. The offer is available until February 29, and no application fee is required by the bank.
In addition, TSB is adding a new non-rate incentive: an Air New Zealand Mystery Break for two. The fine print says:
Return domestic air travel (Seat & Bag) on Air New Zealand; A rental car with unlimited kilometres; Two nights’ 4-5 star accommodation at your mystery destination. Deluxe Mystery Break packages are non-transferable and are subject to Air New Zealand’s ‘Deluxe Mystery Break’ terms and conditions. Package will be supplied as a voucher and is valid for travel within twelve months from date of issue.
Mortgage rates now compare across all banks as follows:
| below 80% LVR | 1 yr | 18mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | |
 |
4.39 | 4.95 | 4.49 | 5.10 | 5.25 | 5.35 |
 |
4.39 | 4.49 | 4.49 | 4.75 | 5.15 | 5.25 |
 |
4.39 | 5.09 | 4.39 | 4.49 | 5.40 | 5.50 |
 |
4.49 | 4.49 | 4.85 | 5.25 | 5.35 | |
 |
4.39 | 4.95 | 4.39 | 4.80 | 5.25 | 5.35 |
 |
4.39 | 4.49 | 4.49 | 4.75 | 4.99 | 5.15 |
 |
4.25 | 4.49 | 4.99 | 4.99 | 4.99 | |
 |
4.35 | 4.35 | 4.35 | 4.65 | 5.29 | |
 |
4.35 | 4.69 | 4.29 | 4.79 | 5.35 | 5.35 |
In addition, BNZ has a fixed seven year rate of 5.90%, while TSB Bank offers a fixed ten year rate at 5.75%.
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