Two-year rates go below 7%
Home loan rates are still intensely competitive as lenders seek to attract new borrowers in their “Spring” campaigns.
Monday, November 15th 2004, 2:36AM
Today ASB Bank is taking the price war straight back to BNZ, undercutting its two-year rate by a full 20 basis points.
It is the first lender to go below the 7% barrier in this offensive, offering finance at 6.95% compared to BNZ’s 7.15%.
BNZ’s response will be interesting as it to continue its “Unbeatable” campaign it is going to have to make a relatively large cut. Also BNZ managing director Peter Theody was reported over the weekend as saying that the bank would not move its two-year fixed rate before next month.
While BNZ has been trumpeting its standard two-year rate, other banks are pretty close to it with their special rates for large home loans.
For instance Sovereign knocks 15 basis points off its rate for loans of more than $200,000, ANZ also offers discounts and Westpac has its Redpac offering which includes other discounts on transactional banking products.
Currently TSB Bank is on 7.19%, and Sovereign ($200,000 plus), Bank Direct and ANZ are all on 7.20%.
Two year rates range from a low of 6.95% to 8.50% with the average sitting around 7.64%.
During the past week many home loan providers have increased their variable rates around 25 basis points, or quarter of one percent, in line with the Reserve Bank lifting its Official Cash Rate from 6.25% to 6.50% on October 28.
Variable rates range from 8.95% down to 7.95% with the banks dominating the top of the table with rates of around 8.75%.
For a full list of rates and to see what changes have been made in the past week go to http://www.goodreturns.co.nz/section/200.html
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