Two more banks have lowered home loan rates.
First, the Co-operative Bank dropped its four and five year rates by -16 bps to 5.39% and 5.59% respectively.
That put the four year rate as the lowest in the market apart from the HSBC Premier offer. And the five year rate matches Westpac and HSBC Premier.
Then ASB announced rate changes to six fixed terms.
They raised their one year rate from 4.39% to 4.49%. That matches the one year offer from the Co-operative Bank, but is now above the 4.45% offers at ANZ and Kiwibank.
But they lowered all other rates.
ASB's eighteen month fixed rate offer is now the lowest of any bank other than HSBC Premier at 4.55%.
Their two year rate is down by -10 bps to 4.59% and also the lowest other than from HSBC Premier.
Their three year rate is down by -10 bps to 4.89%, but TSB has a lower rate yet: 4.79%.
For four years fixed, ASB's new rate is 5.39%, also a -10 bps drop, to a rate matching the Co-operative Bank but still above the HSBC Premier offer.
And their new 5.59% rate now matches a number of rivals, Westpac, The Co-operative Bak, and HSBC Premier.
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 December 8, 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%.