BNZ has cut is 18 month Classic home loan interest rate.
The new rate is 5.39%.
This is 20 bps lower than what it replaced.
It is now the most competitive 18 month rate in the market.
The BNZ Classic product requires at least a 20% equity in the property provided as security.
Their new rate applies from today.
It's cut comes as wholesale money rates have been moving higher and rates in the 2-5 year bracket have been raised by most banks in the past month.
It also comes as the RBNZ moves to implement its new macro-prudential speed limit tool, restricting how much banks can offer home loan borrowers who have equity less than 20%.
That central bank move has seen the separation of offers by banks, focusing more competitive terms on borrowers with high equity in their home, and penalising those with low equity.
In addition to the table below, TSB has a 15 month 'special' rate of 5.15%.
See all advertised mortgage rates here.
| 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs | |
 |
5.45% | 5.75% | 5.95% | 6.50% | 7.10% |
 |
5.40% | 5.65% | 5.95% | 6.40% | 6.99% |
| BNZ | 5.39% | 5.39% | 5.95% | 6.29% | 6.90% |
| Kiwibank | 4.89% | 5.95% | 6.40% | 6.90% | |
 |
4.94% | 5.75% | 5.95% | 6.50% | 7.10% |
| Co-op Bank | 4.94% | 5.50% | 5.99% | ||
| HSBC Premier | 4.99% | 5.65% | 6.05% | 6.60% | |
| SBS / HBS | 4.95% | 5.40% | 5.45% | 5.80% | 6.29% |
 |
5.40% | 5.65% | 5.85% | 6.45% | 7.00% |
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