Banks continue to chip away at their home loan rate offers. Today it is BNZ offering a market leading three year fixed mortgage rate

Banks continue to chip away at their home loan rate offers. Today it is BNZ offering a market leading three year fixed mortgage rate

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.

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 20, 2019 % % % % % % %
               
ANZ 4.99 3.89 4.19 3.95 4.05 4.85 4.95
ASB 4.95 3.95 4.19 3.89 4.05 4.35 4.45
4.99 3.89 4.79 3.95 3.89 4.35 4.45
Kiwibank 4.99 4.05   3.99 4.09 4.29 4.39
Westpac 4.99 3.89 4.09 3.95 3.95 4.35 4.45
               
3.99 3.99 4.09 3.99 4.15 4.39 4.49
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 3.99 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 3.89 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%.

Fixed mortgage rates

Select chart tabs »

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

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.

4 Comments

Comment Filter

Highlight new comments in the last hr(s).

D.C., how much for the painting of the cat stuck in the black hole?

Can anybody validate if China Construction Bank are serious and should even be on this table? I emailed them Thursday last week, outlining our financial position at a high level and expressing interest in their 2 year rate - no response, not even an automated reply. Would be keen to hear if anyone else has had dealings with them. Jenny?

WOW, 3.89% fixed for 3 years !!! That is low indeed for 3 years

They've printed so much money that it's now worthless. Just wait until everyone realises it, then look out.