BNZ has fallen into line, reducing its one and two year Classic (special) fixed home loan rates.
Now all four Aussie major banks offer 3.65% for one year (Kiwibank offers 3.55%) and all of them offer 3.59% for two years fixed.
BNZ offers these 'special' rates to investors as well, but with a +25 bps premium.
It has made no changes to its standard rates.
It has ignored the 3.35% HSBC Premier mortgage rates launched over the weekend.
'Classic' fixed rates are only available when a customer has at least 20% equity in the property provided as security. A BNZ transactional account with the customer’s salary or wages credited and one other product is also a qualification requirement.
At the same time, BNZ has trimmed its term deposit rate offers, reducing almost all rates. These reductions range from -10 bps to -40 bps. They have flattened their offers sharply, taking their four and five year offers down from 3.00% to just 2.60%. In fact, 2.60% for these terms is now the lowest offer in the market.
For the two most popular terms, their six month TD offer is now 2.75% and their one year offer is 2.70%, both higher than the long rates. These are also among the lowest of any main bank for these terms.
Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks with the new HSBC offers included.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at September 2, 2019||%||%||%||%||%||%||%|
|China Construction Bank||4.70||4.85||3.65||3.90||4.95||4.95|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.