Another major home loan bank joins ANZ at a market-leading level for a key mortgage rate, dropping it by 16 bps. It also cut some key term deposit rates by 20 bps

Another major home loan bank joins ANZ at a market-leading level for a key mortgage rate, dropping it by 16 bps. It also cut some key term deposit rates by 20 bps

BNZ has followed ANZ and adopted 3.69% as its key fighting rate for home loans as their one year fixed offer.

This is a cut of 16 basis points and represents the market leading rate position for carded rates.

And it sets these two majors at 10 bps below Kiwibank for this term, and 16 bps below both ASB and Westpac.

BNZ has cut all their Standard rates for residential owner-occupiers, and for residential investors (which are at a premium of +25 bps to Standard rates).

However, there are only four other BNZ-best rate changes. Their six month rate got a trim of -20 bps to an noncompetitive 4.79%. (In fact, this level is 100 bps higher than the equivalent offer from the Cooperative Bank.)

Their two year Classic special is unchanged at 3.75%, similar to its key rivals.

Their three year Classic special is now down to 3.99%, a rate five other banks already offer, and above the 3.89% level offered by two challenger banks

BNZ also has a unique seven year fixed rate and this has been cut by -25 bps to 5.70%, a full 55 bps higher than their carded standard five year rate.

At the same time, BNZ has cut all its term deposit rate offers out to three years by between -5 and -20 bps with the popular 6 month rate by the full -20 bps and the one year rate also cut by -20 bps.

Classic 'special' rates are only available to customers with 20% equity or more and who have a transaction account into which wages or salaries are direct credited.

Update: TSB has advised that their Price Match Promise will end today. Update II: TSB has reduced most of its 'special' rates from its original card, many of which are higher than the 'Price Match Promise' rates. The current rates are now reflected in the table below. It has also cut its floating rate by -40 bps to 5.29%. And it has established new Standard rates which are 80 bps above their current 'specials'.

Update II: Westpac has also chimed in late today with similar reductions for its 'specials', meeting the competitive challenge.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

Fixed, below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at August 13, 2019 % % % % % % %
               
ANZ 4.29 3.69 3.99 3.75 3.99 4.85 4.95
ASB 4.49 3.85 3.89 3.75 4.05 4.35 4.45
4.79 3.69 4.55 3.75 3.99 4.35 4.45
Kiwibank 4.79 3.79   3.79 3.99 4.29 4.39
Westpac 4.99 3.69 4.79 3.75 3.99 4.35 4.45
               
Co-operative Bank 3.79 3.79 3.79 3.84 3.99 4.29 4.39
China Construction Bank 4.70 4.85   3.65 3.90 4.95 4.95
ICBC 4.85 3.85 3.99 3.95 3.89 4.29 4.39
HSBC 4.85 3.79 3.79 3.79 3.89 4.19 4.29
HSBC 4.99 3.78 3.78 3.78 3.99 4.49 4.49
  4.55 3.85 3.89 3.79 4.05 4.45 4.55

In addition to the above table, BNZ has reduced its unique fixed seven year rate by -25 bps tof 5.70%.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here. And term PIE rates are here.

Fixed mortgage rates

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16 Comments

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Keep going!

Could easily be 2.69% in 12 months' time......

TTP

Why do you say that? Banking is not some form of nature or public service. The mortgage rate could only go to 2.69% if it fits into a profit optimization model of the banks.

Thanks TTP. I was planning on buying ASAP, but now I think I'll wait 12 months to get those lower rates.

But you may be paying 7% more for that purchase in 1 years time. Nothing's guaranteed.

A world recession is coming and there is nothing anybody can do about it. NZ and Australia are to be worst hit as they have not had a recession for so long and the debt bubble is so high due to sky high house prices. Short sighted selfish politicians like John Kee are to blame. He actually promoted this bubble for massive gains for his friends at all of our expense. Greed and ruin is his legacy.

Sorry but that's an emotional comment with little thought behind it. John Key is steeped in dogma, but so are most people who have been successful in an institutional environments. Yes, he promoted the bubble because it fits into what he has done throughout his career: satisfy his clients. Furthermore, Key is likely to be aware of the postive impacts of asset booms / bubbles (whatever you like to call it). And the most important impact of a property bubble is vibrant consumer spending. It's all about trade offs and Key backed the bubble.(which is not correct anyway. The "insititutional collective" has backed the bubble, not one man). If he had done anything to prevent the bubble, he would have been chastised by the public and also by the establishment.

Slight correction on above: He would have been chastised by the multiple home owning selfish elite and commended by the normal hard working fair thinking public.

He would have been chastised by the multiple home owning selfish elite

Let's meet halfway and say 'chastised by vested interests'

Still, bit of a shame he had the dishonesty to run on fixing the housing crisis only to insist there was no such thing, it was a good problem to have, a sign of our success etc., and to continue on perpetuating and inflating it.

Still, bit of a shame he had the dishonesty to run on fixing the housing crisis only to insist there was no such thing, it was a good problem to have, a sign of our success etc., and to continue on perpetuating and inflating it

Well yeah. Fundamentally he was a populist with a strong background in wealth generation. He's a product of Merrill Lynch who came out smelling of roses. Those whose luck might be different in that world are usually quite cynical.

One thing though, Key timed it right and quit when the going was good and cashed in the chips, as successful dealers usually do. May be his ilk will come back if the present government does not deliver on growth and equality.

Why do BNZ and Westpac have such poor 18 month offerings compared to 12 and 24?

House prices are still very affordable or there wouldn’t be so many people still buying!
John Key was not responsible for the price increases in Auckland any more than what this Coalition Government is?
Immigration hasn’t decreased and with immigration comes money that helps NZ out!

They're offering 3.64 without being prompted for "loyal" customers. I suspect they'll go lower without too much bother.

Yes, the Future is Here..
'Danish bank launches negative interest rate mortgage in world first'.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=122...