A second NZ-owned bank has moved to undercut the big four on their two-year home loan interest rates.
From tomorrow, TSB will offer a 2.49 per cent interest rate across both its two-year and 18-month terms.
TSB had already slashed its one-year loan rate to 2.49 per cent in August.
As well as this, TSB says it will match any advertised fixed rate offered by an Australian-owned bank.
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Only Heartland Bank has lower one and two-year home loan interest rate terms, currently 1.99 per cent and 2.35 per cent respectively.
"In our current economic climate, the majority of customers are choosing to fix for shorter terms, so by offering a consistently low rate, TSB is making it simpler for Kiwis to choose a loan length best for their personal needs," said Justine St John, GM marketing and customer experience.
TSB's rates will be offered until further notice and are available for both new and existing customers with 20 per cent equity.