BNZ has started the week with a home loan rate cut, dropping their three year Classic rate to 3.89%.
This pushes low sub 4% rates out further and is the lowest three year rate on offer in the market (with TSB who have a 'price-match promise' to match it).
BNZ's new rate is for a 'limited time', due to run only until June 9, 2019.
'Classic' fixed rates are only available when a customer has at least 20% equity in the property provided as security. For residential property investors, more equity may be required where Reserve Bank minimum equity restrictions apply. A BNZ transactional account with the customer’s salary or wages credited and one other product is also required.
BNZ has also reduced its three year investor rate to 4.14%.
This is where the lowest 'special' rates sit across the whole set of durations.
|Lowest rate||offered by ...|
|as at May 20, 2019||%|
|Floating||5.59||Bank of Baroda|
|Six months fixed||3.99||The Co-operative Bank|
|One year fixed||3.89||ANZ, BNZ, Westpac, (TSB)|
|Eighteeen months fixed||3.99||HSBC, SBS Bank|
|Two years fixed||3.65||China Construction Bank|
|Three years fixed||3.89||BNZ, (TSB)|
|Four years fixed||4.29||Kiwibank|
|Five years fixed||4.39||Kiwibank|
|Seven years fixed||5.95||BNZ|
The only bank that does not appear in this table is ASB. ASB does have a 3.89% rate for two years fixed, but that is beaten by the very low 3.65% offer from China Construction Bank.
Since the beginning of May, three year wholesale swap rates have fallen -13% to their all-time low level of 1.56%. But the fall since the beginning of April is only half that at -6 bps. So today's new market-low three year rate is underpinned by lower wholesale rates.
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 20, 2019||%||%||%||%||%||%||%|
|China Construction Bank||5.15||5.10||3.65||3.90|
|with price match promise||4.85||3.89||4.09||3.89||3.89||4.35||4.45|
In addition to the above table, BNZ has a fixed seven year rate of 5.95%.