Mortgages

Home loan price war breaks out

BNZ started things a week ago when it widely advertised a promise that it will have “the lowest advertised two-year fixed home loan rate of the big four banks.”

Sunday, October 17th 2004

Technically the claim was true as the fine print named the competition. However at the time ASB-owned Bank Direct was matching BNZ with a 7.40% two-year rate.

Then on Friday morning ASB moved to match BNZ at 7.40%. BNZ has responded dropping its rates another 5 basis points to 7.35% (although this is still unannounced).

New Zealand’s biggest non-bank lender, Sovereign, which is also owned by the ASB has jumped in on the game and dropped its two and five year rates.

Its standard two-year fixed rate is 7.65%, but its rate for home loans of more than $200,000 is 7.40%.

These rates are significantly below the bulk of the mainstream banks that are sitting on 7.75%. National Bank is the piggy-in-the-middle with a two-year rate of 7.60%. Overall two-year rates range from a low of 7.40% to a high of 8.55%.

Read More - Opens in a new window
Heartland Bank - Online 1.99
Kainga Ora - First Home Buyer Special 2.25
HSBC Premier 2.25
Westpac Special 2.29
TSB Special 2.29
BNZ - Classic 2.29
ASB Bank 2.29
ANZ Special 2.29
Kiwibank Special 2.35
ICBC 2.45
SBS Bank Special 2.49
Heartland Bank - Online 2.35
HSBC Premier 2.35
ICBC 2.45
TSB Special 2.49
SBS Bank Special 2.59
BNZ - Classic 2.59
ASB Bank 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
The Co-operative Bank - Owner Occ 2.69
AIA 2.69
HSBC Premier 2.89
SBS Bank Special 2.99
The Co-operative Bank - Owner Occ 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
TSB Special 3.19
Kiwibank Special 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank 3.40
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
Heartland 3.95
The Co-operative Bank - Owner Occ 4.40
The Co-operative Bank - Standard 4.40

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