A challenger bank takes a knife to their one year rate to claim a market-leading position at 4.10%, going lower than ASB's offer for that term

SBS Bank has announced two rate cuts to their fixed mortgage rates.

A -25 bps cut to their one year 'special' rate has them grabbing the market leading rate for that term, taking their offer down to 4.10%. It has trumped ASB's 4.15% rate.

They have also cut their two year 'special' rate to 4.29% from 4.35%, a -6 bps reduction.

No other rates in their rate card have changed.

These changes are effective on Monday, April 4, 2016.

They are made possible by the sharp fall in wholesale swap rates and the parallel winding back of risk premiums in the past three weeks, which coincidentally happened after the RBNZ surprised markets with a -25 bps cut.

As always, you should try to negotiate a rate lower than the carded rates. Many banks will entertain that to either retain or win your business. But your negotiating strength will very much depend on the quality of your financial position

Here is where fixed rates stand after the SBS Bank reductions:

below 80% LVR	1 yr	18mth	2 yrs	3 yrs	4 yrs	5 yrs
	%	%	%	%	%	%
	4.25	4.89	4.35	4.99	5.20	5.30
	4.15	4.15	4.39	4.65	5.00	5.15
	4.25	4.99	4.39	4.64	4.99	5.15
	4.29		4.25	4.75	4.90	4.99
	4.25	4.95	4.39	4.80	5.09	5.19
	4.25	4.35	4.35	4.65	4.89	4.99
	4.25	3.95	4.39	4.59	4.79	4.99
	4.10	4.35	4.29	4.65		4.99
	4.35	4.35	4.29	4.79	5.35	5.35

In addition, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.