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 |
 |
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 |
 |
4.99 | 4.05 | 3.99 | 4.09 | 4.29 | 4.39 | |
 |
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 |
 |
4.85 | 3.99 | 3.99 | 3.99 | 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 | 3.89 | 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
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4 Comments
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?
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