Weekly home loan report: Banks keep chopping down two-year fixed rates

Wednesday 25 February 2004

Banks are competing fiercely for home loan business by chopping their two-year fixed rates to levels well below other fixed rates.

By The Landlord

The Bank of New Zealand kicked the battle off just over a week ago when it dropped its two-year rate to 6.99% - along with a little trumpet blowing (“BNZ…sets a new market benchmark for two-year rates”).

Others lenders – mainly banks – followed suit with ANZ, ASB and National going to 6.95% (nothing like undercutting the market leader by 0.04%). Bank Direct went a little further to 6.90%, while HSBC and Sovereign (the biggest non-bank lender) dropped their equivalent rates to just 7.15%.

BNZ and HSBC also dropped other fixed rates and Westpac took its hybrid 30-month rate to 7.15%.

However BNZ counter-punched on Friday dropping its two-year rate another 20 basis points to 6.79%.

Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Mortgages

Mortgage rates may be at cycle low: ASB

Take note, investors: It is "quite possible" fixed rate mortgages have hit their lowest point in this cycle, according to economists at ASB.

Site by PHP Developer