Two-year home loan rates a bargain

Monday 15 March 2004

Hot competition continues in the medium term home loan rate market with BNZ moving the aggressive pricing strategy it has used for its two-year rate to the three-year one as well.

By The Landlord

BNZ, announced on Friday night, that it is now offering a three year fixed rate at 6.99% - significantly below its competitors. However, both these rates are for its Ultimate Home Loan package that is a combination of fixed and floating.

The rate is not available on GlobalPlus Home Loans or any other packaged offers, where the applicable 2-year rate is 7.30% and applicable 3-year rate is 7.50%.

"BNZ set the pace for the two-year fixed home loans," general manager of business development Andrew Whitechurch says. "Now we're offering a market-leading home loan rate for three-year fixed home loans as well."

Aside from BNZ's activity on Friday last week was noticeably quiet in the lead up to the Reserve Bank's Official Cash Rate announcement with no significant changes being made.

The RBNZ left the OCR at 5.25% on Thursday. Following the announcement there have been some tentative moves downwards. Cairns Lockie/eMortgage, General Finance and Wizard all dropped fixed rates.

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