BNZ introduces new advertised one-year mortgage rate undercutting rivals, but borrowers require 20% equity

BNZ introduces new advertised one-year mortgage rate undercutting rivals, but borrowers require 20% equity

BNZ has introduced a 4.95% one-year home loan interest rate, which is the lowest one-year rate advertised by a bank.

The rate, effective from today, through BNZ's "Classic" home loan product range, is available to borrowers with at least 20% equity in their property.

The new rate undercuts the previous lowest advertised one-year fixed rate of 4.99% from a range of banks including the Co-operative Bank, SBS Bank, HSBC and Kiwibank.

HSBC's offer is to its "Premier customers" who must have minimum combined home loans of NZ$500,000 or NZ$100,000 in savings and investments with HSBC.

See all advertised bank home loan interest rates here.

BNZ separately advertises a 5.25% one-year fixed rate through its "Standard & Fly Buys" and "GlobalPlus" home loans.

Meanwhile, BNZ has also cut two term deposit rates for minimum deposits of NZ$5,000.

It has dropped its three-month rate by 75 basis points to 3.25% and its one-year rate by 20 basis points to 4.20%. See all advertised term deposit rates here.

 

This positions the BNZ's mortgage rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
           
5.19% 5.45% 5.80% 6.10% 6.30%
ASB 5.19% 5.45% 5.75% 5.95% 6.25%
BNZ 4.95% 5.40% 5.80% 6.10% 6.30%
Kiwibank 4.99% 5.25% 5.65% 5.99% 5.99%
Westpac 5.09% 5.40% 5.90% 6.15% 6.25%
           
Co-op Bank 4.99% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 4.99% 4.99% 5.65%   5.99%
TSB 5.25% 5.30% 5.75% 6.10% 6.30%

TSB Bank still has a low rate Special 15 month offer of 4.95%.

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9 Comments

Nice little teaser for first home buyers.
Rude not to really.

4.95% the lowest????
 
Ppl with high equtiy ratio and a relative large loan can do better than this. 
 
Aim for 4.6 - 4.8% guys!

Still waiting for a good 5 year deal from the BNZ !

What do you  call a good 5yr deal?

The Australian Reserve bank will probably cut 0.25% or 0.5% tomorrow, following on from the ECB cut of 0.25% last week. So don't be fooled into 4.95% fixed for one year as an OCR rate cut is highly likely in NZ. The banks are making record profits and have huge margins so you should ask for and expect better than their published rates. 4.4% should be possible for 1 year fixed - just ask!

Time somebody broke out of the cartel and offered a cheap floating. Not going to happen in this virtual monopoly.  Time to break up the big four. The new twenty banks sounds better.

just been offered 5.6 for 3 years + $1500 cash. we have 70% equity - Banks dont seem to be interested in us anymore as we have been paying off debt in large chunks. it seems you have to be borrowing large, with an inability to pay to get a good deal so they suck you in, then spit you out! Repaying loyal customers doesn't matter anymore!

1500 cash sounds pretty good if you don't have a huge loan. doesn't it work out better than say 4.5% and no cash?

it would be good if BNZ can match the same interest rate as HSBC, Kiwi bank , SBS on the 5 year deal.  I think at the moment BNZ 5 years is the most expensive with TSB and ANZ.