ASB and Bank Direct have lowered key fixed mortgage rates, bringing their five year rate down to the lowest level of any of the main banks. Their new five year rate is now 8.50 per cent, down 0.25 per cent.
This gives them at least a 0.10 per cent
advantage over The National Bank, the closest other main bank.
Westpac and ANZ are still at 8.65 per cent, and BNZ is at 8.75 per cent for a fixed five year term. Only HSBC has a lower 5 year rate. at 7.99 per cent for their Premier offer, which has specific conditions that apply.
Kiwibank is at 8.69 per cent, TSB is at 8.65, and SBS Bank is at 8.75 per cent ASB also lowered its 4 year rate to 8.20 per cent, also the best 4 year rate by a bank. Its one year fixed rate fell to 6.25 per cent, bringing it in line with most other banks.
At the same time, cousin Sovereign lowered its rates by a similar amount as ASB, although their rates tend to be priced 0.15 per cent above ASB levels.
Wholesale swap rates have been gradually shifting lower for quite some time now, while the Reserve Bank has its OCR on hold and housing loan demand has been very average.
This 3 month run of very small decreases seems to have built up enough volume to allow banks to re-price their fixed term mortgage rates. It is probable that other banks will follow ASB's lead if these conditions hold.
The mortgage market has reverted to a 'positive rate curve', meaning shorter term rates are now lower than longer term rates. In fact, the lowest rates available are generally floating rates, and the best variable rate is currently BNZ's Total Money floating rate at 5.59 per cent.
INTEREST.CO.NZ
