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New BNZ 4-year fixed mortgage interest rate undercuts rivals

Property
New BNZ 4-year fixed mortgage interest rate undercuts rivals

BNZ has introduced a new, market leading, advertised four-year mortgage interest rate.

BNZ's rate, in its "Classic" product line, is 5.89%. That undercuts the previous lowest advertised four-year rate, the Co-operative Bank's 6.05%.

Other banks' advertised fixed-term, four-year rates range from 6.10% to 6.35%.

The new BNZ rate is, however, only available for customers who have at least 20% equity in the property provided as security.

Separately, the Co-operative Bank, formerly PSIS, is raising three advertised fixed-term mortgage rates. Effective tomorrow, its six-month rate rises 10 basis points to 5.55%, its one-year rate increases 15 basis points to 5.40% and its two-year rate lifts 5 basis points to 5.55%.

And on Tuesday evening TSB said its one-year and three-year advertised rates were being increased, effective immediately. TSB's new one-year rate is 5.40%, up 20 basis points meaning it no longer has the lowest advertised one-year rate on offer by a bank, with that now being the 5.25% promoted by Kiwibank, BNZ and SBS Bank. TSB has lifted its three-year rate by 15 basis points to 5.90%.

See all bank advertised mortgage rates here.

(Updates add TSB & Co-op Bank increases).

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