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SBS Bank extends its 2.29% home loan rate out to terms of 18 months and two years fixed, making the two year offer the lowest in the market. It is also offering up to $6000 as a cash incentive

SBS Bank extends its 2.29% home loan rate out to terms of 18 months and two years fixed, making the two year offer the lowest in the market. It is also offering up to $6000 as a cash incentive

Local home loan rate offers are falling further out the term curve now.

SBS Bank has extended its 2.29% one-year fixed home loan offer to terms of eighteen months and two years fixed.

It is also offering a cash incentive of up to $6,000 "for eligible home loans".

These rates are available for new lending over $100,000. They will become available on Saturday, February 13, 2021 and are "for a limited time".

SBS Bank says it specialises in lending to first home buyers, although this new offer is available to all qualifying borrowers.

The 2.29% rate for two years gives them a -6 bps advantage over their nearest bank rival, and a -30 bps advantage over the lowest main bank offers of 2.59% from ASB and BNZ. ANZ, Kiwibank and Westpac are all higher yet for that two year term on a carded rate basis.

For any term, the lowest carded offers are the 1.99% from Heartland Bank and HSBC. SBS Bank's new 18 month rate of 2.29% is the next lowest offer for that term.

The criteria for the cashback offer are here. A quick summary is that it is a cash payment of up to 0.70% of your initial loan advance, to a maximum of $6000 (which would be reached for a new loan of $857,000). You need to agree to have your salary or primary income paid directly into a transactional account at SBS Bank, and have a minimum of 20% equity for Residential Home Loans or 40% equity for Residential Investing.

One useful way to make sense of these new lower home loan rates is to use our full-function mortgage calculators. Term deposit rates can be assessed using this calculator.

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 February 13, 2021 % % % % % % %
               
ANZ 3.39 2.29 2.55 2.69 2.79 3.90 3.99
ASB 3.39 2.29 2.49 2.59 2.65 2.99 2.99
3.39 2.29 2.49 2.59 2.79 2.99 2.99
Kiwibank 3.55 2.35   2.65 2.65 3.09 3.19
Westpac 4.15 2.29 3.25 2.69 2.79 2.99 2.99
               
Bank of China  3.45 2.35 2.45 2.55 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 (*FHB only) 2.29 2.09* 2.59 2.59 2.79 2.89 2.99
Heartland Bank   1.99   2.35 2.45    
HSBC 2.79 1.99 1.99 2.35 2.65 2.79 2.89
ICBC  2.89 2.25 2.35 2.35 2.65 2.89 2.99
 SBS Bank 3.39 2.29 2.29 2.29 2.65 2.89 2.99
 [incl Price Match Promise]  2.89 2.29 2.49 2.49 2.65 2.99 2.99

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

Fixed mortgage rates

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15 Comments

Lower for longer.

Lower forever! Any increase, conflicts with Government's mantra of 'We only want a small amount of annual house inflation'

In any other business, having to rely on discounts and promotions to meet sales targets is an indicator that all is not well. For NZ's 'biggest industry' (house trading), it's normal.

1.99/2.29% is the lowest mortgage rate for 34years or more in NZ.
It’s a long way from 20%.

Overall a very good offer. Based on this I think you could negotiate 2.06% flat rate with any of the main banks.

Tui ad

Give it a week or two and I will let you buy me one. At that rate you might even be able to afford Champagne!

So SBS is trying to build it's residential mortgage book. At those rates it's "buying" customers and will reap the benefits down the track (2-3yrs).

How long until we get the:

"Take out a Fixed Rate Mortgage with us today at 0.99% and make no repayments until 31st March 2023. Use that extra cash to buy a new car or go and see parts of our wonderful country you never thought you'd get the chance to visit. But wait - there's more! Have 7 free nights on us in Queenstown as an additional 'Thank you' for trusting us with your home lending" (Termination and Other Terms & Conditions apply)

Of course, there'll be the 'Catch Up Clause' in the tiny print somewhere, but not to worry! Just get out there and Borrow and Spend. Borrow and Spend my fellow New Zealanders. Because that's all that stands between our country going to the IMF with a begging bowl in our hands and getting back to the lifestyle that is our God Given right.

Plus a free set of Ginsu knives, may come in handy later

I'm surprised at the low rates being offered given the strong CPI numbers. Clearly retail banks don't believe the Reserve Bank will take away the punch bowl any time soon.

I mean who does truly believe the RBNZ will take away the punch bowl? Anyone

Yay, lets push house prices up even higher.

Doesn't seem like a great offer, a cap of $6k? Main banks would match/surpass that. Guess most banks don't advertise it though so this could get some business...

Do wonder if these cash back offers would ever bring the banks to the governments attention given how they have acted on power company incentives.