Banks are competing fiercely for home loan business by chopping their two-year fixed rates to levels well below other fixed rates.
Wednesday, February 25th 2004, 7:18AM
by The Landlord
The Bank of New Zealand kicked the battle off just over a week ago when it dropped its two-year rate to 6.99% - along with a little trumpet blowing (“BNZ…sets a new market benchmark for two-year rates”).
Others lenders – mainly banks – followed suit with ANZ, ASB and National going to 6.95% (nothing like undercutting the market leader by 0.04%). Bank Direct went a little further to 6.90%, while HSBC and Sovereign (the biggest non-bank lender) dropped their equivalent rates to just 7.15%.
BNZ and HSBC also dropped other fixed rates and Westpac took its hybrid 30-month rate to 7.15%.
However BNZ counter-punched on Friday dropping its two-year rate another 20 basis points to 6.79%.
