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 |
 |
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
|
 |
4.99 | 4.05 | 3.99 | 4.09 | 4.29 | 4.39 | |
 |
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 |
 |
4.85 | 3.99 | 3.99 | 3.69 | 4.39 | 4.89 | 4.95 |
 |
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%.
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