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Last Article Uploaded: Thursday, October 21st, 8:47AM

Mortgages

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Simplicity cuts floating rate to 1.9%

Default KiwiSaver provider Simplicity has slashed its variable rate mortgage to 1.9%, one of the lowest rates available in the market.

Friday, June 18th 2021, 11:03AM

The new rate is sharply priced, though ASB's variable rate Back My Build loan is available at 1.79%.

Most bank floating rates remain above 3.4%, despite a record low official cash rate and supportive monetary policy.

Heartland offers a 1.95% variable online home loan, with the next cheapest Resimac at 3.39%.

The cheapest fixed term mortgage remains Heartland's one-year online home loan at 1.85%. 

Simplicity, a non-profit KiwiSaver provider, was recently made one of the Government's default schemes.

Its floating rate mortgages are available to members only, for first homes. Customers can apply and receive pre-approvals online.

Simplicity said its 35 basis point cut was the fifth reduction in rates since it launched its home loan offering in 2019.

“Someone has to keep the banks honest, and the current interest rate climate supports lower mortgage rates,” Sam Stubbs, co-founder of Simplicity, said.

“The main banks currently charge from 3.40% to 4.59% for a floating rate mortgage. At those rates the banks aren’t being robbed, they’re doing the robbing.

“And the banks offer cheaper fixed rates because they want borrowers to renegotiate your mortgage every year or two. That allows them to sell more high fee products like credit cards and insurance,” he added. 

Tags: floating rate mortgages Lending Sam Stubbs Simplicity

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.99 3.45 3.69
ANZ 4.59 ▲3.84 ▲4.30 ▲4.54
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲3.24 ▲3.70 ▲3.94
ASB Back My Build 2.04 - - -
ASB Bank 4.45 2.99 3.45 3.69
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▲2.99 ▲3.45 ▲3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.70 ▲3.59 ▲4.05 ▲4.29
BNZ - TotalMoney 4.70 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.45 2.85 3.15
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank ▲4.00 3.80 ▲4.15 ▲4.50
Kiwibank - Offset ▲4.00 - - -
Kiwibank Special 3.75 2.95 ▲3.30 ▲3.65
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 3.05 3.45 3.75
SBS Bank Special - 2.55 2.95 3.25
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.79 - -
The Co-operative Bank - Owner Occ 4.55 ▲2.99 ▲3.60 ▲3.89
The Co-operative Bank - Standard 4.55 ▼3.49 ▲4.10 ▲4.39
TSB Bank 5.34 ▲3.54 ▲4.00 ▲4.24
TSB Special 4.54 ▲2.74 ▲3.20 ▲3.44
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.84 ▲3.59 ▲4.05 ▲4.29
Westpac - Offset 4.84 - - -
Westpac Special - ▲2.99 ▲3.45 ▲3.69
Median 4.57 2.99 3.45 3.69

Last updated: 21 October 2021 9:00am

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