BNZ obviously didn't much like ANZ and Westpac matching their new low 3.54% two year 'special'.
So they have lower it again by another -5 bps to 3.49%, effective Monday, September 23, 2019.
That means they have the lowest two year rate among the major banks again.
And it puts them a full -10 bps lower than both ASB and Kiwibank for that tenor. And -16 bps lower than any one year 'special' rate for any of their Aussie bank rivals.
However, it ignores the recent cuts by the two Chinese banks, with the latest one from the Bank of China pushing their two year 'special' down to 3.15%.
BNZ's Classic 'specials' come with a slightly more stringent condition than for ANZ, requiring not only at least 20% equity in the property provided as security, and salary or wages credited to a BNZ transaction account, but to get this rate at BNZ you are also required to have "one other product" at BNZ.
At the same time, BNZ have trimmed -5 bps from their'special' residential investor rate to 3.74% which is priced 25 bps higher than for residential owner-occupiers.
BNZ did not announce term deposit rate cuts with this mortgage announcement.
Wholesale swap rates have been falling this week and the two year rate is -7 bps higher than a week ago. Term deposit rates have flattened out completely and now some of the highest rates on offer are the specials' in the 6 months to one year tenors. But 'highest' is a relative term - all these rates are historically low and few from any bank are over 2.8%. These deposit rates have an out-sized bearing on how low the main banks can pitch their home loan rates.
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 23, 2019 | % | % | % | % | % | % | % |
| ANZ | 4.29 | 3.65 | 3.99 | 3.54 | 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 | 3.49
|
3.99 | 4.35 | 4.45 |
 |
4.79 | 3.55 | 3.59 | 3.99 | 3.99 | 3.99 | |
 |
4.99 | 3.65 | 4.79 | 3.54 | 3.99 | 4.35 | 4.45 |
| Bank of China | 3.99 | 3.15 | 3.70 | 3.15 | 3.79 | 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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15 Comments
We report on rate changes as soon as we know they are coming. In this case, the BNZ one is effective on Monday, September 23. And Mister B is right, the Westpac change is also effective Monday, September 23.
We always assume readers will want to know about future rate changes so they can make an informed decision. Banks don't update their websites until the change becomes effective.
It's been obvious lower interest rates were in the offing for some considerable time. Those that had the foresight to see it locked in their savings at more favourable rates than we see today, some time ago.
Those who didn't ( and still don't appreciate what's coming, lower interest rates being the least of our worries) will have to deal with current circumstances as best they can - harsh, but fair.
I'll wager there are many amongst us who see these rates as 'good' and a time to 'invest' at low debt costs? It's as obvious today of 'what's coming' as it was when interest rates when 4.69% and considered a 'bargain'. Borrow and buy at your peril today. Borrow and save as much as you can by all means, because tomorrow at "0%" there'll be very little leaving the lenders books, and no matter how low 'bargain' asset prices are, and there will be no way to access them without stored debt..
(NB: This isn't about 'what should happen' but about 'what's going to happen'. Low interest rates will eventually kill whatever tiny chance there is left for us to exit current circumstances with one sleeve left on our collective shirts))
If the RBNZ keeps on having an easing basis and even talking about QE - with rate cuts indicated before year end and early next year - think it's probably a very strong chance that we will see sub 3% rates next year some time.
How long that would last for, who knows - but given the verbals from the RBNZ and unless global econmy perts up - cash rate is heading down - along with mortgage rates.
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