Another major home loan lender adopts the market low rate, following its main rivals. Wholesale rates keep falling

Another major mortgage bank has set its one year fixed mortgage rate at 4.89%.

Kiwibank has adopted the rate that was first launched by ASB and then matched by ANZ.

Other banks are likely to fall into line soon as wholesale rates support these lower levels.

In fact, we are pretty sure one of the smaller banks will go even lower on Monday morning.

Although they are not the only influence in setting home loan offer rates, wholesale swap rates do set the minimum cost limit, and these wholesale benchmarks have been falling quite markedly recently. You can track their movements here.

Global uncertainties and recent signals from the Reserve Bank have both built a sinking tone into New Zealand interest rate markets.

See all banks’ carded, or advertised, home loan rates here. 

Almost all home loan competition is now back focused on the interest rate. Non-rate incentives have essentially dried up. You can see see the current non-rate home loan incentives here.

The new Kiwibank fixed mortgage rates will compare as follows on Monday morning:

below 80% LVR  1 yr  18mth  2 yrs   3 yrs   4 yrs   5 yrs 
  % % % % % %
4.89 5.55 4.99 5.59 5.75 5.79
ASB 4.89 5.49 5.10 5.39 5.75 5.65
5.19   4.99 5.29 5.65 5.75
Kiwibank 4.89   4.99 5.39 5.75 5.60
Westpac 5.49 5.49 4.99 5.59 5.75 5.79
             
5.15 4.99 4.99 5.35 5.55 5.69
HSBC 4.95   4.95 5.40 5.50 5.60
SBS Bank 4.99 5.39 4.99 4.99   5.59
5.45 5.59 4.99 5.40 5.85 5.85