Lower wholesale rates and low term deposit offers open small opportunities for banks to trim mortgage rates, but movement is not large, despite slow real estate markets

Kiwibank is ending its free Samoa holiday promotion for customers who move an existing home loan to the bank or draw down a new home loan of at least $200,000.

That deal required borrowers to have a minimum equity of 20%, and in return you get return flights for two adults to Apia flying economy with Air New Zealand on a Seat + Bag ticket, five nights in an Ocean View Room at Taumeasina Island Resort, with daily buffet breakfast, airport transfers in Samoa, and 1 GB of WIFI per day. This deal ends on Sunday, November 26, 2017.

From Monday, November 27, it is being replaced with two new lower fixed rates.

Kiwibank is trimming -10 bps off its fixed one year rate taking it down to 4.45%. That is the same level as ANZ but not as low as the 4.39% offered by ASB, or the 4.19% offered by HSBC Premier.

And it is taking -10 bps off its four year fixed rate to 5.65%. But that new rate for this term is actually still higher than all its rivals except ANZ, BNZ and Westpac.

These changes also apply to AMP Home Loan branded offers.

At this time, none of Kiwibank's rate offers are market leading. They are above some rivals for all its fixed rate offers.

In wholesale markets, the one year swap rate dipped today to 1.99%, the lowest level for that term on record.

And other wholesale rates dipped as well even if they are not at record lows. The four year swap is at 2.46%, its lowest level since mid September.

See all banks' carded, or advertised, home loan interest rates here.

Here is the full snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at November 24, 2017 % % % % % % %
4.99 4.45 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.39 4.60 4.69 4.99 5.49 5.69
5.35 4.59 5.05 4.69 4.99 5.89 6.09
Kiwibank 4.99 4.45   4.65 4.99 5.65 5.69
Westpac 5.25 4.59 5.15 4.69 4.94 5.89 5.59
4.80 4.55 4.69 4.69 4.99 5.55 5.75
HSBC 4.85 4.19 4.19 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.69 4.69 4.99 5.49 5.69
4.85 4.55 4.65 4.69 4.79 5.55 5.69

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

And TSB still has a ten year fixed rate of 6.20%.

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Banks are getting desperate for business. Not surprising with such low sale figures coming out. You would have to be a sucker to take out a loan for 2 years in a falling market. Just wait for 2 years , you will be able to save a hell of a lot more than what you can save on this deal. But im sure the banks already can see this, and hope you dont. But they will have you locked in if you are dumb enough to sign that contract.