A split in the mortgage market became more pronounced today (Tuesday).
ICBC has joined other Chinese banks offering very low fixed rate 'specials' after splitting their rate card between 'standard' and 'special' offers.
Their new headline rate is 3.18% which is now available for 12, 18 and 24 months, and 3.20% which is avilable for three years fixed.
These new 'specials' represent almost a -60 bps cut from their previous levels.
ICBC are the third bank to offer all rates 1 to 5 years below 4%, after Kiwibank and HSBC.
The four Chinese-owned banks/branches now have an average one year fixed offer level of between 3.15% (Bank of China) and 3.35% (HSBC). This is far below the range for one year 'special' offers from the main big five (3.55% to 3.65%).
Similarly, these four banks are offering two year fixed rates in a range of 3.15% to 3.35%, and that is also far below the big five main banks who are all on 3.49%.
At the same time, ICBC has reduced its term deposit offers by between -10 bps to -30 bps and now no longer offer any TD rates over 3%.
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 October 1, 2019 | % | % | % | % | % | % | % |
| ANZ | 4.29 | 3.65 | 3.99 | 3.49 | 3.99 | 4.85 | 4.95 |
 |
4.29 | 3.65 | 3.75 | 3.49 | 3.89 | 4.19 | 4.29 |
 |
4.79 | 3.65 | 4.55 | 3.49 | 3.99 | 4.35 | 4.45 |
 |
4.79 | 3.55 | 3.49 | 3.99 | 3.99 | 3.99 | |
 |
4.99 | 3.65 | 4.79 | 3.49 | 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 | 4.29
|
3.18
|
3.18
|
3.18
|
3.20
|
3.99
|
3.99
|
 |
4.65 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 |
 |
4.29 | 3.65 | 3.69 | 3.59 | 3.99 | 4.49 | 4.49 |
 |
4.35 | 3.69 | 3.69 | 3.59 | 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.
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