Non-major bank cuts rates
The Co-Operative Bank has made cuts to its six month and two year rates to 4.50% and 4.25%, respectively.
In CANSTAR's latest rate update this week, its general manager for New Zealand, Jose George says, “Borrowers with a healthy level of equity really are in the driver’s seat at the moment when it comes to negotiating with their financial institution."
“Institutions really are prepared to compete hard for those borrowers. Currently on the canstar.co.nz database, the eight lowest home loan rates available are all for borrowers with at least 20 percent equity. The lowest rate available at up to 95 percent LVR on our database is a residential fixed 18 months loan with The Cooperative Bank. It has a competitive rate but is still 20 basis points higher than the lowest advertised rate offerings.”
Overall, the minimum, maximum and average home loan interest rates on the canstar.co.nz database as at today are:
Table: Residential Home Loan Market - Snapshot of the current market (24/05/2016)
Floating 1 Year Fixed 2 Year Fixed 3 Year Fixed 4 Year Fixed 5 Year Fixed
Average 5.60% 4.52% 4.53% 4.76% 4.93% 5.08%
Min 5.45% 4.25% 3.99% 4.39% 4.59% 4.79%
Max 5.85% 4.85% 4.95% 5.25% 5.35% 5.35%
Source: www.canstar.co.nz, the search results do not include all home loan providers, and may not include all features relevant to you.