BNZ has separated itself from the main pack with a new lower two year fixed home loan rate.
It has launched a 3.54% rate, -5 bps below all its main rivals for this tenor.
Their residential investor rate is also trimmed, now to 3.79%.
Only HSBC Premier (3.35%) and China Construction Bank (3.19%) have lower two year fixed offers.
This new rate is also lower than the 3.55% one year fixed rate on offer from Kiwibank. So among all banks except the two just mentioned, this is the lwoest rate in the market at this time.
This change comes after sharp rises in wholesale rates at the end of last week. Two year swap rates edged up to 1.02% and capping a +12 bps rise on the past ten days. Overnight uncertainty in the oil markets may interupt the new trend.
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 September 16, 2019 | % | % | % | % | % | % | % |
| ANZ | 4.29 | 3.65 | 3.99 | 3.59 | 3.99 | 4.85 | 4.95 |
 |
4.29 | 3.65 | 3.75 | 3.59 | 3.89 | 4.19 | 4.29 |
 |
4.79 | 3.65 | 4.55 | 3.54
|
3.99 | 4.35 | 4.45 |
 |
4.79 | 3.55 | 3.59 | 3.99 | 3.99 | 3.99 | |
 |
4.99 | 3.65 | 4.79 | 3.59 | 3.99 | 4.35 | 4.45 |
| Co-operative Bank | 3.69 | 3.69 | 3.75 | 3.75 | 3.99 | 4.19 | 4.29 |
| China Construction Bank | 4.70 | 3.19 | 3.19 | 3.19 | 4.95 | 4.95 | |
| ICBC | 5.15 | 3.79 | 3.79 | 3.75 | 3.99 | 4.29 | 4.39 |
 |
4.65 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 |
 |
4.29 | 3.69 | 3.69 | 3.69 | 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 a unique fixed seven year rate of 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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18 Comments
If bank lending rates went up, FHB's would soon be squealing - and for very good reason.
Reaching for your inner DGM. Let's try another tack. One key reason why interest rates risie is because house prices are on fire, So ultimately rising interest rates are a signal that the FHB is making a good decision.
J C like many here, you're getting cause and effect mixed up, you're doing well when you say "interest rates risie is because house prices are on fire" (although inflation is more what the ORC targets) but then you imply that "rising interest rates are good as they mean house prices will rise" You've put the cart in front of the horses there. Cause: interest rate movement - effect house price movement, not the other way around
Rising house prices "is" inflation. And far more dangerous than the CPI construct. Excessive leverage has flowed into asset prices and ZIRP or NIRP support\ asset prices.
So back to the point: monetary policy can be used to stymie asset speculation. One of the biggest criiticisms leveled at ALan Greenspan is that interest rates were kepr too low, thereby causing a speculative housing bubble. Of course, that was pre-GFC. Interest rates have been driven lower, alongside QE, to stimulate speculation.
We seem to be heading more towards the extreme end of the credit cycle (although it could go well negative this time). This cycle has repeated over and over in history. It’s never good for investors or FHBs left holding the bag, although always good for value investors waiting for the inevitable turn. So soon we even forget the housing and loose credit lessons of the GFC in the US and Europe?
I meant the general credit cycle - loose credit in a boom, followed by a bust and a tightening of credit. Has happened over and over. Yes, this one is extreme; certainly uncharted territory in that regard, although Japan has been there for a while, and their housing market went to rock bottom for a long time. We cannot assume everything will be hunky dory with the consequences of this cycle. We’ve had a property mania, with a lot of cheap credit.
Probably nowhere near the terminal rate, but a reasonable half-way stop. Lots going on in the World...and none of it good. Bond rates spike probably won't last long, but long enough to scare a few holders out, and will be fun to watch. There is no 'safe' alternative to what we have now embarked on ( lower rates) - and lower asset prices results from all of it - all of them, and much, much lower! Are we all ready?!!
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