SBS Bank launches a market leading 5.55% fixed five year home loan rate while reducing three other fixed rates, the latest bank to cut their mortgage rates

SBS Bank has joined the party, dropping home loan rates for four fixed durations.

They follow most of their rivals.

But they have launched a market-leading rate for a five year fixed term.

At 5.55% this is a true market-leading rate, even lower than the HSBC Premier rate for this term.

That is a 4 bps advantage over HSBC, Co-operative Bank, ASB and Westpac. It is a 54 bps advantage over ANZ and BNZ.

Other rate changes from SBS Bank include

- a one year rate reduced to 4.35%, matching Kiwibank and ANZ but still above ASB's 4.30% offer, but still well above HSBC Premier's 4.19% market-leading offer,

- an 18 month rate reduced to 4.59% which is not particularly rate competitive compared with HSBC Premier (4.19%) and ASB (4.39%),

- a two year rate reduced to 4.64%, which is behind HSBC Premier's 4.29% and TSB's 4.39%.

SBS Bank's five year, however, does rule the roost for that duration.

However, SBS Bank also reduced its nine month and one year term deposit rate offers at the same time.

SBS Bank was the first to reduce mortgage rates in 2018. Just about everyone has followed.

Also, keep in mind that Kiwibank does have a $2,000 cashback offer on the table provided you stay with the bank for three full years.

If you are in the market for a mortgage, or a rollover, now is a good time to negotiate.

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 February 16, 2018 % % % % % % %
4.99 4.35 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.30 4.39 4.65 4.89 5.39 5.59
5.35 4.39 5.05 4.65 4.99 5.89 6.09
Kiwibank 4.99 4.35   4.65 4.99 5.65 5.69
Westpac 5.25 4.39 5.15 4.65 4.94 5.89 5.59
4.80 4.39 4.69 4.69 4.99 5.39 5.59
HSBC 4.85 4.19 4.19 4.29 4.89 5.29 5.59
HSBC 4.99 4.35 4.59 4.64 4.99 5.49 5.55
4.85 4.49 4.65 4.39 4.89 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%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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I wonder how SBS will cope with the stampede of customers looking to lock in for 5 years. Said no one, ever.