ASB has gone one further, lowering their 4.49% one year fixed home loan rate to 4.30%.
That puts it lower than both ANZ and Kiwibank's 4.35% rate for that term. And since the, the Co-operative Bank has also reduced its one year rate.
And the new ASB rate goes some way to covering Kiwibank's $2,000 cash-back additional offer.
This new offer is effective Friday, February 15 and as a 'special' it requires a minimum of 20% equity in the security property; that is, a loan to value ratio (LVR) of 80% or less.
And other ASB existing discounts do not apply to these special rates.
The last time ASB had a one year rate as low as this was in the first week on January 2017 when it was 4.29%.
This latest rate is now just +11 bps above the market-leading HSBC Premier rate for one year fixed
Borrowers are benefiting with deals at finer margins.
Margins are being squeezed because wholesale interest rates are not really shifting at the short end where one and two year home loans are funded. Only by reducing term deposit rates can they protect those margins.
And sales of homes in the real estate market are stalled at volumes about the same level as a year ago - and prices are lower.
If you are in the market for a mortgage, or a rollover, now could be a good time to negotiate.
If you have completed a recent transaction, especially one where you ended up with a below-rate-card deal, we would love to hear about it in the comment section below.
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 February 16, 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%.