Major bank makes two rate cuts

by NZ Adviser16 May 2016
BNZ has a new two year special rate of 4.19% and also a special rate for its three year fixed at 4.49%.

Like BNZ, Westpac’s two year rate sits at 4.19% and Kiwibank last week announced a 3.99% two year rate making it a market-leading low.
 
According to the latest update from Canstar, the next-lowest 2 year fixed advertised rate on the canstar.co.nz database is 4.19 percent, offered by a number of insitutions (ASB, NZHL, Sovereign, TSB and Westpac).

Canstar general manager for New Zealand, Jose George said, “An interesting trend that we have observed in Australia over the past month has been a high level of competition in the 2 year fixed-rate home loan space. So Kiwibank’s move in dropping its two year fixed rate to below four percent is very interesting; it could be the start of a two year fixed rate war in New Zealand as well and the good news is that borrowers will benefit.
 
ASB, New Zealand home Loans and Sovereign all dropped their two year fixed rates earlier this month, with Westpac following suit last week. Kiwibank’s aggressive move, though, is somewhat of a game-changer.”  
 
Currently the highest, lowest and average home loan rates on Canstar’s database are as follows:
 
Table: Home Loan Market - Snapshot of the current market (16/05/2016)
  Floating 1 Year Fixed 2 Year Fixed 3 Year Fixed 4 Year Fixed 5 Year Fixed
Average 5.60% 4.52% 4.53% 4.86% 5.09% 5.20%
Min 5.45% 4.25% 3.99% 4.64% 4.89% 4.99%
Max 5.85% 4.85% 4.95% 5.25% 5.35% 5.40%
Source: www.canstar.co.nz, the search results do not include all home loan providers, and may not include all features relevant to you.
             
 

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