Home loan rate war moves to one year market

BNZ has been dominating headlines and advertising with its “Unbeatable” campaign, offer to better any two year rate offered by the major banks.

When ASB this week dropped its two-year rate to 6.95%, 20 basis points below BNZ, the big blue bank responded and pitched its rate at 6.90%.

However this week ASB and its sister companies Sovereign, Bank Direct and to a lesser degree NZ Home Loans, cut their two year rates and also cut their one year rates.

Currently they have one-year rates significantly below BNZ.

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