BNZ is the latest institution to cut a mortgage rate.
Effective Friday, February 9, their new one year fixed term interest rate is to be 4.39% for their Classic offer.
That will make it the lowest one year rate from any bank except the HSBC Premier offer.
At 4.39%, that matches ASB's eighteen month 'special' rate which was introduced two weeks ago.
4.39% is currently the lowest rate for any term for any bank, other than from HSBC Premier.
For a one year fixed rate, BNZ has an advantage of -6 bps over ANZ, Kiwibank and Westpac, and a -10 bps advantage over ASB.
There are no other home loan rate changes from BNZ at this time. But there may be savings or term deposit rate changes announced by them tomorrow.
BNZ Director of Retail and Marketing Paul Carter says current rates are "some of the lowest interest rates in a generation and the economic outlook indicates that may continue for most of 2018."
Yesterday, Westpac cut its one year rate to 4.45% from 4.59%, bring its one year offer more into line with their main rivals. Earlier in the week, TSB moved off its 4.44% one year rate, raising it slightly to 4.49%.
And Kiwibank is now offering $2,000 cashback in a reprise of an earlier mortgage market incentive.
Today's change comes after the RBNZ decided to leave official rates unchanged. They also signaled that the next official rate change could go either way, but current official positions will remain in place for a considerable time yet.
After today's RBNZ announcement, wholesale swap rates are unmoved.
Short-end wholesale rates have been fairly stable even as long end rates have been very volatile in international markets.
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 January 22, 2018||%||%||%||%||%||%||%|
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%.