The Co-operative pushes for first home buyers

The Co-operative Bank is taking on the big four with a new 2.09% mortgage rate for first home buyers, amid strong competition for prime borrowers.

Thursday, January 28th 2021, 9:24AM

The challenger bank, run by David Cunningham (pictured), has launched its new offer this morning, available for owner-occupiers purchasing their first property with a minimum 20% deposit.

The new rate makes The Co-operative an attractive proposition for first time buyers, as banks across the market clamour for prime borrowers.

At just 2.09%, the rate is the cheapest one year offer in the market, aside from Heartland's digital mortgage at 1.99%, a limited offer to the NZ market. 

The Co-op has also slashed its six-month to two-year rates this morning as mortgage rates continue to fall.

Its one year drops to 2.29%, level with the big four, and two-year falls to 2.59%, level with ASB and BNZ.

Despite economists predicting the official cash rate will remain on hold, and a slight rise in wholesale mortgage rates in recent months, mortgage rates continue to drop.

The Reserve Bank's Funding for Lending Programme is further expected to push rates down this year. 

Tags: Co-operative Bank Lending Mortgage Rates

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