BNZ launched a new fixed rate special of 4.39% on its Classic two-year product this morning, making it the lowest two year rate in the market and a record breaking low for two year fixed term offered by any bank.
The special fixed rate is only 4 basis points higher than BNZ’s own Classic one year fixed rate of 4.35% and their standard two year rate holds at 5.09%.
Craig Herbison, BNZ Director Retail and Marketing told NZ Adviser the sharp rate is a part of BNZ’s campaign to increase borrowers’ awareness on realistic expectations on when they will be mortgage-free.
“It’s a very competitive market, (the low rate) does get people to stop and canvas their options,” Herbison says.
He says they aim to help customers pay off their mortgage faster and the special rate encourages people to start a conversation and question whether they are setting themselves up now for the future and the retirement that they want.
The special rate is effective from today until Sunday 18th October 2015 and conditions apply, including minimum 20% equity, having daily transaction account with BNZ with salary direct accredited. Their one year Classic rate of 4.35% has been extended until the 18th October also.
The only two year rate that comes close is the TSB Bank Special and HSBC Special at 4.49%.
Westpac’s special and ANZ Special two year rates sit at 4.64% and 4.65% respectively and ASB Bank Special for the same term is a whole 30 basis points higher than BNZ. Resimac has also made cuts to its one year rate bringing it down to 5.24% and its two year rate to 5.29%
BNZ’s new special follows a raft of appointment changes to its leadership team last week.
Acting Director of Retail, David Bullock has been appointed Director, Products and Technology, charged with building on BNZ’s strong leadership in digital products and services.
Richard Griffiths, the former Head of Next Gen NZ Enterprise Transformation is now Director, Strategy and Business Performance. Peter Whitelaw has been appointed Chief Risk Officer, joining BNZ from NAB, where his most recent role was General Manager, Group Market Risk.
Current Chief Marketing Officer, Craig Herbison, was also appointed Director Retail and Marketing, a move which merges BNZ’s retail and marketing operations. And Martin Gaskell, formerly Chief Operating Officer - BNZ Partners, is now Director, Customer Fulfilment Services.
It is yet to be seen whether the Reserve Bank’s announcement on the official cash rate in a few weeks’ time may prompt more lenders to change or lower their rates.