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BNZ back below 4%

BNZ has slashed its two year classic mortgage to 3.99%, but owner-occupiers, rather than investors, will benefit from the sub 4% rate.

Monday, March 25th 2019, 11:01AM

The lender has cut 30 basis points from its classic two year rate, taking it below the 4% marker. The major lender joins Sovereign, Westpac, ASB, and KiwiBank offering a two year term below 4%, as rates continue to edge down this year. 

Investors will not be able to access the sub 4% rate from BNZ, however. It is only applicable to residential owner-occupiers. Investors will pay an additional 25 basis points, after a second rate card for investors was introduced in October. Advisers say BNZ has enforced higher rates for investors for several months.

The 3.99% offer is open to owner-occupiers with at least 20% equity in their home. According to marketing materials, the offer is open to customers with an account and one other product with the bank.

Competition is heating up once more after a short-lived price war in November and December. Last year, ANZ cut its fixed one year rate to 3.95%, prompting falls across the market to levels not seen since the 1940s. 

BNZ's move leaves ANZ as the only major lender with a two year special rate above the 4% mark. As of Monday, ANZ's special two year rate is 4.29%. 

The price war for New Zealand borrowers comes as wholesale interest rates trend down, as the market expects the OCR to remain on hold or even fall over the next 12 months.

New Zealand is poised for a prolonged period of low interest rates. The Reserve Bank makes its latest OCR decision on Wednesday. The central bank is widely expected to hold rates amid subdued economic growth, and downside risks to the domestic and global economy. The central bank expects the OCR to stay where it is until 2021. 

What can we expect from Wednesday's announcement? The results of TMM's OCR Preview Survey can be found here.

Tags: BNZ OCR OCR forecasts

« OCR Preview: What the experts are predictingChurch on her new role; ANZ finally joins party »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.39 ▼4.35 4.55
ANZ Special - 3.89 ▼3.85 4.05
ASB Bank 5.70 4.45 4.39 4.55
ASB Bank Special - 3.95 3.89 4.05
BNZ - Classic - 3.89 3.95 3.89
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.60 4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.60 ▼4.60 4.84
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 3.85 3.85 4.09
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 4.89 4.99 -
Resimac 5.30 4.86 ▼4.14 ▼4.19
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.89 3.99 3.99
Sovereign 5.80 4.45 4.39 4.55
Sovereign Special - 3.95 3.89 4.05
The Co-operative Bank - Owner Occ 5.65 3.95 3.99 4.05
The Co-operative Bank - Standard 5.65 4.45 4.49 4.55
TSB Bank 5.69 ▼4.45 4.49 ▼4.55
TSB Special - 3.95 3.99 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.89 ▼3.85 4.05
Median 5.80 4.45 4.39 4.19

Last updated: 14 June 2019 9:43am

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