Bank of 'Let's Do It' sets a 4.49% two year fixed mortgage rate, about -16 bps lower than all its main rivals but still above both HSBC and TSB

BNZ has launched a Classic 'special' two year fixed mortgage rate of 4.49%.

This is a drop of -16 basis points.

This new rate is the lowest two year rate by any major bank. But TSB has a lower 4.39% rate for that term, and HSBC Premier offers 3.95%.

BNZ last had a two year offer this low (4.45%) in January 2017.

Classic fixed rates are only available when you have at least 20% equity in the property provided as security. The rate is not available for some investor lending. For residential property investors, more equity may also be required where Reserve Bank minimum equity restrictions apply.

A BNZ transactional account with your salary or wages credited and one other product is required.

Today's (Tuesday) change comes after HSBC Premier burst on to the market with its sub-4% rate offer last week. HSBC Premier offers come with restrictions that are unusual in the New Zealand market.

Kiwibank's $2,000 cash-back offer has now ended

Wholesale rates have been rising, but not at the short end of two years or less.

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
	4.95	4.30	4.39	4.65	4.89	5.39	5.59
	5.35	4.39	5.05	4.49	4.99	5.89	6.09
	4.99	4.35		4.65	4.99	5.65	5.69
	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
	4.85	4.19	4.19	3.95	4.89	5.29	5.59
	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%.