BNZ ends its promise
The home loan rate market has fallen into a bit of a hiatus over the past week, partly because it was a short week, and also because the Reserve Bank chose to leave the Official Cash Rate unchanged.
Monday, May 2nd 2005, 12:52PM
The main piece of news is that Bank of New Zealand’s Unbeatable campaign finished on Friday.
However, the bank is still selling fixed two-year home loans at 7.60% as Classic Home Loan.
The difference is, as of Friday, it has ended the “Unbeatable” promise to beat any of the other major lenders.
Its standard two-year rate is 7.80% which is the same as other banks.
Looking at what is on offer we currently have floating home loan rates ranging from a low of 7.85% (Silver Fern) to a high of 9.25% (Headstart). However the range is very tight once the outliers are taken out of the equation. Under this scenario most floating rates are between 8.45% (New Zealand Mortgage Funds) and 9.05% (Westpac).
In the competitive two-year fixed rate market the range is much wider, with Kiwibank the lowest at 7.50% and NZ Mortgage Funds the highest at 8.45%. Most of the banks are offering two-year loans around the 7.80% mark.
In the three year market the lowest rate is Bank Direct’s 7.60% and the highest is NZ Mortgage Funds at 8.38%. Westpac has its capped rate slightly higher at 8.45%.
To compare home loan rates go to http://www.goodreturns.co.nz/section/200.html
| « Economists reckon RBNZ wants to raise rates again | Westpac manages to weather home loan price war » |
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