Not to be outdone, BNZ has released a revised rate card for its Classic home loan 'specials' that feature all rates between one and five years under 3%.
This comes just one week after their last cuts.
This latest set are effective Monday, May 25, 2020.
BNZ's one year fixed 'special' is 2.79%, a drop of -26 bps.
All other Classic term rates out to five years are now 2.99% and these involve cuts up to -60 bps.
This move comes after all their main rivals have moved lower. The most aggressive drop so far has come from ASB with their two year 'special' at 2.69%, so these BNZ rates don't threaten that.
But BNZ now has market leading positions for three, four and five years fixed. In fact BNZ is the only bank offering rates below 3% for these terms.
The mortgage pricing landscape is changing very quickly now, with multiple, market leading announcements daily.
Interestingly, the main bank most off the pace now is state-owned Kiwibank - and it is from them the next move is most likely to come.
As we have noted elsewhere, these sharp home loan rate decreases are going to mean more pressure on savers. Banks are adept at not announcing TD rate cuts at the same time, doing those separately but often so the decreases each sound small. But they are compounding to very low offer rates now for term deposit investors.
One useful way to make sense of these new lower rates is to use our full-function mortgage calculators.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options.
Here is the updated snapshot of the advertised lowest fixed-term rates on offer from the key retail banks at this time.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at May 22, 2020||%||%||%||%||%||%||%|
|Bank of China||3.89||2.79||2.89||2.89||3.19||3.79||3.89|
|China Construction Bank||4.70||2.80||2.85||3.19||3.30||3.45|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.