In a slowing housing market, banks chase carded home loan rate offers lower. Weighted average offers at challenger banks are lower than for the main banks

In a slowing housing market, banks chase carded home loan rate offers lower. Weighted average offers at challenger banks are lower than for the main banks

In a bold move, one of our smaller banks has cut home loan rates across the board - and to competitive levels.

SBS Bank has adopted 3.99% as its rate for all terms one to three years, has also cut its four and five year rates hard.

It is a line-up that matches up well with its major rivals, but only at the 18 month fixed point is it offering a market leading rate (along with HSBC).

But on a weighted-average basis, SBS Bank's overall rate lineup is very competitive indeed. In fact, on that basis, the offerings of our smaller banks stack up well. SBS Bank and TSB are very similar if you allow TSB's price-match promise as part of the calculations. Across the whole fixed range both banks have a similarly competitive price positioning to HSBC and the current low-price leader, China Construction Bank.

On this same basis, among the majors the range is marginally higher than the challengers although they are also quite a tight range, with Westpac the overall lowest in this group. There is little in it among the others with ANZ's low 3.95% one year rate for a popular duration offsetting its uncompetitive positions for four and five years fixed, terms that are not yet that popular at all.

Among all banks, ANZ and TSB have the lowest one year rate offer at 3.95%. For the popular two year term, it is China Construction Bank with the lowest offer at 3.65%.

BNZ cut its four and five year rates late yesterday.

Average home loan interest rates for all durations have never been lower - ever.

In fact, of the 59 price points in the table below, 24 of them are lower than 4%.

In wholesale markets, interest rates are similar today to those applying at the beginning of April for four and five year tenors. However, they are almost -25 basis points lower than swap rate levels applying at the beginning of March.

In this announcement, SBS Bank did not adjust its term deposit rates at the same time.

See all banks' carded, or advertised, home loan interest rates here.

Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at May 4, 2019 % % % % % % %
               
ANZ 4.99 3.95 4.19 3.99 4.19 4.85 4.95
ASB 4.95 4.09 4.19 3.99 3.95 4.35 4.45
4.99 4.05 4.79 3.99 3.95 4.35 4.45
Kiwibank 4.99 4.05   3.99 4.09 4.29 4.39
Westpac 4.99 4.05 4.09 3.99 3.95 4.35 4.45
               
3.99 3.99 4.09 4.15 4.35 4.59 4.69
China Construction Bank 5.15 5.10   3.65 3.90    
ICBC 4.85 3.99 4.19 3.99 4.49 4.95 4.99
HSBC 4.85 3.99 3.99 3.69 4.39 4.89 4.95
HSBC 4.99 3.99 3.99 3.99 3.99 4.49 4.49
 with price match promise 4.85 3.95 4.09 3.99 3.95 4.35 4.45

In addition to the above table, BNZ has a fixed seven year rate of 5.95%.

Fixed mortgage rates

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Whats with CCB's high one year rate?

Are people being offered discounts from these sub 4% carded rates? This was quite typical when rates were higher.

No harm in shopping around - especially if you have strong credit-worthiness.......

I'd wager you'll be pleasantly surprised.

TTP

cjmain. I refixed a loan last week, with ANZ was unable to get them below 3.95 for 1 and 2 year ( they refused to match HSBC on 2 year term). My bargaining position was not great though as I had a year to run on the cash contribution claw back.

... thanks , banks ... 'cos house prices are only at stratospherically high levels in this country ... we need lower mortgage rates to push them even higher ... to keep them permanently out of the reach of the hoi polloi ... the actual workers in this fair land , girt by red tape ...

The floating rate is nearing 6% and slowly but steadily climbing. It's all looking rather dangerous.