TSB has brought back its Price Match Promise for home loan rates.
From Wednesday, November 27 until Saturday, December 14, they will price match any nationally-advertised home lending rate offered by an Australian-owned bank.
The last time TSB offered this was in February this year and that offer ran until August 13, 2019.
TSB isn't changing its own rate card, but will match any fixed rate that is lower that its own. Currently, TSB's carded six month 'special' is 4.35% so this involves a -46 bps reduction for that fixed term. Their one year 'special' is 3.55% so the Promise involves another -16 bps reduction to match the Aussies. TSB has equally low rates for two and three years fixed. But for four and five years, they will accept 3.99% involving a -46 and -56 bps reduction respectively.
TSB actually has a lower 18 month rate than any Aussie bank, so it sits with a -25 bps advantage there compared with ASB who is the next lowest.
To get TSB's Price Match Promise, you need to ask for the lower matching rates. And they only apply to either new clients when negotiating, or existing clients who are negotiating either a new loan or a rollover arrangement. Existing TSB clients don't automatically get these offers.
Interestingly, TSB's floating rate is currently 5.29% while ANZ offers 5.19%, so new TSB clients could win a -10 bps savings here too. (Because floating rates are always up for revision at any time, presumably existing TSB clients only need to ask for this discount.)
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 November 26, 2019||%||%||%||%||%||%||%|
|Bank of China||3.99||3.15||3.39||3.39||3.79||3.99||3.99|
|China Construction Bank||4.70||3.15||3.15||3.19||3.30||3.45|
|Price Match Promise||3.89||3.39||3.99||3.99|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.