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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

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
ASB 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
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 3.95 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 comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.


Who says interest rates have gone up?
“The Man” did say that they would never hit 6 per cent again

Arrogant and ignorant as usual.

...and right so far

.... and what is you point. It's not as if it it has been the most difficult of predictions. It could be argued that as he hasn't made a clarification of which interest rate he is referring that he is wrong as CC interest rates are @ 22%. His use of the "never" is also foolish as this makes it an open ended prediction. Even if it is ten years before mortgage interest rates get back to over 6% it still makes him wrong.

I'm surprised you cannot see my point. It's that he was RIGHT in his prediction, as in the opposite of wrong.
The fact that TM2 speaks about himself in the 3rd person is another matter

I'm surprised you can't see my point that he is only right up to this point in time - the future is not yet written and things can and do change.

To be honest MAN we don't really give a hoot about much of what you predict..especially rising CHCH property values.

If I put a million dollars on black at the casino and black comes up, did I know it was going to be black?

Not arrogant at all Bad Robot!
Just validating the fact that I don’t see interest rates rising whereas many economists have been saying that they will!

Just because interest rates aren't going up at present doesn't mean they won't go up in the future. This is where I think you are making a big mistake - that things can't or won't change and this shows your ignorance. You claim to have business acumen and I would argue that one of the key attributes of anyone with business acumen is an understanding the things are constantly changing.

The "arrogant" bit comes from talking about yourself in the 3rd person TM2

Yvill, If arrogance is about being confident about what I say and what I do, then I am arrogant!
To be successful in life we all need to take the opportunities that come our way and also,look for them.
By sitting back and hoping things will happen will get you nowhere.
Arrogant perhaps but also prepared tohelp others who want to improve their lot, and not rely on others!

No you are arrogant because you dismiss what others say, especially when people point out that you are not as good as you think you are. You seem to have a hard time providing any practical advice for wealth building that is not based on common sense. So much for your business acumen.

Bad Bad Robot, you seem to have difficulty in understanding that property investment is not hard.
It is not all beer and skittle and investors deserve any profit that they do get and it is not unearned income as many on here say.
Property investors do a great job for NZ economy and more of them are needed to supply shelter for those that don’t buy.
This coalition sadly may do the opposite however they will eventually work this out but will it be too late?

THE MAN 2, is "prepared to help others who want to improve their lot"

Rent reductions (relief) all round for your tenants then is it? Maybe, your glass is full of beer and not just foam after all ;-)

Feeling the pressure a bit are you. Stop worrying about what others think I know it is not difficult. Follow your own advice and just get on with doing whatever investing you want - shares , property , Tibetan nose flutes.

We recently fixed 12 months for 4.30 by asking our bank to match ASB's rate. Some commenters here have reported getting 4.20 or even 4.10: we're not big customers any more (our loan is in the 200K range) so were happy for our bank to match the best advertised rate.

In order for 2 year 4.49 to beat this, the 1 year rate 12 months from now would have to be higher than 4.68.

Whether to take the 2 year (or longer) rate depends on the price you're willing to pay for the certainty.

pythagoras, by your name and by your 2nd paragraph post, you validate your liking of maths. Well done ; )

One year fix is the new floating.

Yes: Citation (Mortgagebelt, 2017)