BNZ has matched ANZ and Kiwibank with a two year fixed home loan rate of 4.65%.
This involves a -4 bps trim from their previous Classic special.
This is the lowest rate for that term in the market, except for the 4.29% offer from HSBC Premier.
And the Co-operative Bank has cut -6 bps from its one year owner-occupied fixed mortgage rate, taking it down to 4.49%. However, this new rate is not market leading.
These changes reflect a narrowing of the range between mortgage rate offers. Changes are generally minor even if they are in a downward direction.
The latest mortgage market activity data shows a very subdued environment. New lending is down in October by -14.7% from the same month a year ago with lending to investors down -17%. First home buyers suffered less but it is still down -6.5% year-on-year.
But even if new real estate transactions are coming in lower, the rollover market is still healthy. 60.8% of all housing lending to owner-occupiers will fall due for an interest rate review within the next year. That is $2.5 bln more at $101.1 bln than was due at the start of the year. For investors, it is 62.2% of their lending that is due for an interest rate review within the year.
In wholesale markets, swap rates are basically unchanged from the low levels they have been in the past three months.
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||%||%||%||%||%||%||%|
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%.