Challenger bank SBS has grabbed the market leading home loan rate position with 2.49% fixed for 18 months, two and three years

Challenger bank SBS has grabbed the market leading home loan rate position with 2.49% fixed for 18 months, two and three years

Even though another bank has a lower one year rate, SBS Bank has leapt into the battle for Spring mortgage market share with market-leading rates for the popular 18 month, two and three year fixed terms.

And their cut of -20 basis points and more is enough to open up a meaningful advantage over the main mortgage banks.

For an 18 month fixed term, that advantage is 16 bps. For two years it is a 20 bps advantage. For three years they have a 30 bps advantage over the majors.

SBS Bank also cut their four and five year 'special' rates to under 3%.

SBS Bank's standard rates are all +50% higher than their 'special' rates.

The market low six month fixed rate belongs to the Cooperative Bank at 2.55%

The market low fixed one year rate belongs to HSBC Premier at 2.45%.

SBS Bank now 'owns' that position for all the fixed terms from 18 months to three years. After that it is back to HSBC Premier.

The conditions for SBS Bank 'specials' are for Residential and Residential Investing lending only, with a minimum of 20% equity (or greater when Residential Investing lending restrictions apply), Welcome Home Loan, or lending where QBE lenders mortgage insurance applies.  They are available to SBS Bank members with any level of existing lending with SBS Bank or requires new lending of at least $100,000.

But they are not available with commercial or rural loans, SBS Unwind, or SBS Advance (Reverse Equity Mortgage) loans.

SBS Bank requires your primary source of income paid into a SBS Bank transactional account. 

One useful way to make sense of these new lower home loan 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 lowest advertised fixed-term mortgage 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 October 12, 2020 % % % % % % %
               
ANZ 3.55 2.55 2.65 2.69 2.79 4.15 4.25
ASB 3.39 2.55 2.65 2.69 2.79 2.99 2.99
4.29 2.55 2.65 2.69 2.79 2.99 2.99
Kiwibank 3.55 2.55   2.79 2.79 3.09 3.19
Westpac 4.15 2.55 3.25 2.69 2.79 2.99 2.99
               
Bank of China  3.45 2.55 2.65 2.65 2.75 2.85 2.95
China Construction Bank 4.70 2.65 2.65 2.65 2.80 2.89 2.99
Co-operative Bank 2.55 2.55 2.69 2.69 2.79 2.99 3.19
Heartland Bank   2.89   2.97 3.39    
HSBC 2.79 2.45 2.55 2.60 2.65 2.79 2.89
ICBC  2.95 2.45 2.60 2.65 2.79 2.89 2.99
 SBS Bank 3.39 2.55 2.49 2.49 2.49 2.99 2.99
 [incl Price Match Promise]  2.89 2.49 2.65 2.65 2.79 2.99 2.99

In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.

* TSB also offers all fixed rates below 3% too, but that is only via their Price Match Promise.

Fixed mortgage rates

Select chart tabs »

The '6 months %' chart will be drawn here.
Loading...
unweighted
The '1 year %' chart will be drawn here.
Loading...
unweighted
The '2 years %' chart will be drawn here.
Loading...
unweighted
The '3 years %' chart will be drawn here.
Loading...
unweighted
The '4 years %' chart will be drawn here.
Loading...
unweighted
The '5 years %' chart will be drawn here.
Loading...
unweighted

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

20 Comments

To add to mine on the other thread (The nationalisation of banks has started here via the RBNZ TLF):

This will drive mortgage rates down to 1%, a level from which they will never return. As the RBA nationalises the 38% (and falling) proportion of bank liabilities that were formerly supported by markets to trigger lower mortgage rates, bank margins also keep falling because the remaining 62% of deposits cannot get any cheaper. The endpoint of this internecine stupidity is crushed bank margins and zombie lending which, in the end, will kill of any property resurgence all by itself.

Just another opinion, of course!

Are you equating bank ownership with funding?

Are you equating bank ownership with funding?

Can you identify any other industry that is essentially backed by the ruling elite to the same extent?

Is that a yes or a no?

Rates matching to the second decimal digit. Competition is fierce within the oligopoly!

> BNZ's 3y rate links to ASB's website.

I agree, they look suspiciously similar to me.

Heck! That's not supposed to happen. Fixed now. :(

RBA warning

https://youtu.be/79MyRVIyd4A

Spending is required but the idea to borrow borrow and spend is not sound wisdom ( One has to decide what percentage of family income can and should one borrow) . If printing and distribution of free and cheap money is the solution than why is RBA nervous ?

Government is borrowing like never before and now incentivising people to borrow more and spend. Creating an economy based on very high debt. Where will all this end specially in uncertain time is a question mark.

Law of diminishing return - from here on reducing further interest rate will not go as far but may end up in disaster as low or no interest rate will be the new norm. Japan got away ( if can say so) as it had manufacturing and other industries to support.

Sitting on ticking time bomb, it seems.

Law of diminishing return - from here on reducing further interest rate will not go as far but may end up in disaster as low or no interest rate will be the new norm. Japan got away ( if can say so) as it had manufacturing and other industries to support.

Correct. Japan was always a productive powerhouse, despite the bubble. By the way, h'hold debt to to GDP was never as great as that of NZ and Australia even at the height of their bubble.

Its hard to see anything other than decades of stagnation - central banks are preventing a crash but that will come with a cost. We could have a reset and be away again - with all the bad debt cleared from the system. But instead we're just going to carry all that bad debt into the future, including households/companies - zombies essentially that will be a drag on the economy. Free market is very much a fraud in 2020.

this is good news
it means technology and human genius is winning
we are on the cusp of some think special ...
JK is being vindicated

I am wondering what options we will still have when the next crisis strikes.

This *is* the next crisis.

Yes it is. That has not yet registered with most people. They believe 'back to normal' is around the corner.

Next crisis is when reserve bank and government not able to control even after throwing tons of money in the system, which is not far away as till now consequence of recession not yet started.

Ask any experts and seems to be confused and is only based on HOPE.

Only solution will than be mortage holiday for few years and wage subsidy or universal income for years to come as they have already distroyed the system with their expirement based on herd mentality and fundamentals no longer exist so is disaster waiting to happen

All indicators leads to comming stock market fall, if not crash.

https://youtu.be/oq3_M4dzWKw

WoW 1.99% is just $85 per 100000 so boom in property is yet to start and current rise is just a trailer.

$85?

I presume OP is referring to $85 principal and interest a week on $100k borrowing over 30 years.

Who would do that? Makes no sense, it would be ~33% of real interest being paid in 30y.