Another major home loan lender trims interest rates for some popular terms, matching a big rival, but also going lower than most other majors with its eighteen month fixed rate

Another major home loan lender trims interest rates for some popular terms, matching a big rival, but also going lower than most other majors with its eighteen month fixed rate

ASB is the next bank to cut home loan rates.

It has taken a while, but they have now matched some of the key ANZ reductions, which themselves were in response to the earlier Kiwibank reductions.

But ASB has pushed the boat out a bit further for a fixed eighteen month rate. It has pitched this at 3.89% which is now the lowest for that term of any of the big Aussie banks, and only just +10 bps above HSBC Premier's market-leading rate.

Similar rate changes apply to Sovereign branded home loans.

Their changes also mean that TSB will match them under their price-match promise.

And don't forget that TSB is offering "a cash contribution of up to 0.50% of the total loan amount, up to a maximum of $4,000" until the end of this week, expiring now on June 30 after being extended from June 15. There are conditions of course, but many borrowers should be able to meet those. TSB does not price-match Kiwibank offers.

Recently, wholesale rates have dived. The pace of the falls quickened in the past 48 hours. The one year swap rate is now at 1.38% and the two year at 1.30%. These are down -12 bps and -18 bps since the beginning of June, and down -33 bps and -37 bps respectively since the beginning of May. These swap rates are following benchmark Government bond yields down.

See all banks' carded, or advertised, home loan interest rates here.

Here is the full snapshot of the advertised 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 June 21, 2019 % % % % % % %
               
ANZ 4.49 3.89 4.19 3.85 4.05 4.85 4.95
ASB 4.49 3.89 3.89 3.85 4.05 4.35 4.45
4.99 3.89 4.79 3.95 3.89 4.35 4.45
Kiwibank 4.99 3.85   3.85 4.09 4.29 4.39
Westpac 4.99 3.89 4.09 3.95 4.05 4.35 4.45
               
Co-operative Bank 3.89 3.89 3.89 3.95 4.05 4.35 4.45
China Construction Bank 5.15 5.10   3.65 3.90 5.30 5.30
ICBC 4.85 3.99 4.19 3.99 4.49 4.29 4.39
HSBC 4.85 3.79 3.79 3.79 3.89 4.19 4.29
HSBC 4.99 3.89 3.89 3.99 3.99 4.49 4.49
 with price match promise 4.49 3.89 3.89 3.85 3.89 4.35 4.45

In addition to the above table, BNZ has a fixed seven year rate of 5.95%.

Fixed mortgage rates

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lol, a fool and his money are soon parted.

Most don't have enough to even consider a down payment on a new debt trap - Link

People with the downpayment seemingly are smart enough to dodge what's coming right now.

This couple certainly moved on:

The Browns are among a small subset of New Zealanders who live overseas primarily because they find their homeland too expensive. Known as economic migrants, they have left their home country in search of better living or working conditions elsewhere.

Monica says she and Warren would prefer to live in New Zealand but have found the cost of living "prohibitive".

"If we had stayed in New Zealand, we could not afford a mortgage or a car let alone pay associated costs. Clothing, food and doctor's fees would break the bank for us."

Link

ZB, a smart man with other's people's money (mortgage) is soon very wealthy !

Worked for me, would never have got where I have without a house.

With swap rates continuously sinking, banks can and will go lower than the current, 3.89% : ) who will be first to go below?

many (including ASB with this change) already have a 3.85% rate in a key term

Will be interesting to see how long TD rates are kept higher than they should be

Time to play bitcoin? or some ponzi high returns scheme