Hard on the heels of the majors adopting a 4.89% one year rate, a challenger bank has pushed mortgage rates even lower.
SBS Bank has set their 18 month ‘special’ at 4.85%.
This is now the lowest home loan rate available from any bank in the New Zealand market.
SBS Bank also has the lowest carded offers for 3 years and 5 years as well.
SBS Bank rates are also available from sister brand HBS Bank in the Hawkes Bay.
Most banks have settled on 4.99% for their two year rate offer. Update: Westpac has now also adopted4.89% as their two year special.
The whole mortgage market is settling into a downward trend and this is likely to continue.
The next RBNZ OCR review is on July 23 and wholesale markets are pricing in more rate cuts from the regulator over the balance of 2015. Some see multiple 25 bps cuts.
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 those recent signals from the Reserve Bank have both built a sinking tone into New Zealand interest rate markets.
Almost all home loan competition is now back focused on the interest rate. Non-rate incentives have essentially dried up although there are still some worthwhile but targeted incentives available. You can see see the current non-rate home loan incentives here.
The new SBS Bank fixed mortgage rate will compare as follows on Monday morning:
|below 80% LVR||1 yr||18mth||2 yrs||3 yrs||4 yrs||5 yrs|