BNZ is the latest bank to cut its mortgage rates, including a low of 4.45% for 18 months.
It matches ASB, which earlier this week cut its 18-month term rate to the same point, and gives both banks a leading edge.
BNZ has also cut its six-month term
BNZ lowers fixed-term home loan rates: New 18-month rate of 4.45% puts bank on par with ASB
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There was no change to its one-year rate of 4.49%.
It is the second time BNZ has lowered its rates in the past week, having cut its variable rates last Thursday, and comes two weeks after the Reserve Bank dropped the Official Cash Rate (OCR).
ASB lowered its fixed-term rates on Monday. It introduced a 4.85% rate for six-month terms, its new 18-month rate, a two-year rate of 4.49%, a three-year rate of 4.79%, a four-year rate of 5.09% and a 5.15% rate for five-year terms.
For comparison, Westpac’s six-month rate is 4.99%, as is TSB’s. Kiwibank’s is 4.85% and ANZ’s is 4.79%.
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All major retail banks have matched each other with a one-year rate of 4.49%.
Westpac and ANZ’s 18-month rates are also 4.49%, while TBS’s is 4.75%.
BNZ’s cut today gives it the same 4.49% two-year rate as Westpac, ANZ and TSB. Kiwibank’s is 4.69%.
TSB’s three-year rate is 4.89%, Westpac’s rate is 4.85%, Kiwibank’s is 4.99% and ANZ’s is 4.79%.
BNZ now has the same rate as Westpac’s four-year rate, at 4.99%. TSB’s is 5.19% and Kiwibank’s is 5.39%. BNZ’s cut also gives it the same five-year rate as Westpac, at 4.99%. TSB’s rate is 5.39% and Kiwibank’s is 5.59%.
The Reserve Bank’s Monetary Policy Committee said it remained open to further reductions in the OCR, as required for inflation to settle sustainably near the 2% target mid-point in the medium term.
And on Monday, new figures revealed inflation had hit 3%. Statistics New Zealand data showed the Consumer Price Index (CPI) increased 3% in the year to the September quarter.
Stats NZ spokeswoman Nicola Growden chalked up most of the rise to increases in the cost of electricity, rent and council rates.
Economists had widely expected the annual rate to land at about 3%.
But there was widespread agreement that this would represent a peak in this latest cycle of inflation, allowing the Reserve Bank to look through the breach and cut the OCR again in November.
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Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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