Banks eye long-term customers

Reserve Bank figures show 6442 mortgages were approved in the week, worth $1.059 billion.

That’s almost 25% more loans compared to the same time last year, worth almost 40% more.

But housing debt is only up 1.9% in the year to the end of July and up $318 million to the month of July, indicating that a lot of this lending is customers changing banks.

And banks seem to be trying to secure customers for longer terms.

While cheap one- and two-year rates are capturing attention, there are sub-6% rates available for longer terms.

Westpac is offering 5.99% for four and five years. HBS and SBS join Westpac under 6% for longer periods and ASB is also reportedly offering 5.99% for six years, although that is not advertised.