Mortgage rates may be falling, but so are wholesale rates, allowing room for serious haggling with lenders

Kiwibank is the latest bank to cut home loan rates, making reductions this morning.

They have removed their 1, 3 and 5 year ‘specials’ and reduced their remaining two year ‘special’ to 4.65%, a -34 bps cut to a more competitive level.

And they have pushed their standard rates lower, also to reflect market pricing.

That means they are very competitive with the other main banks for terms 2 to five years, but not so at the one year level. (Their six month fixed rate is also competitive among their main rivals.)

BNZ bests them for the one year rate, as does HSBC who has the market leading offer.

BNZ still has the lowest floating rate.

Kiwibank matches SBS Bank at three years, and apart from the HSBC offer, they are at the low end of all other rivals.

Broker channel lender Resimac has also cut rate mortgage rates, pushing their floating rate down to 5.59% and well below bank offers. They also made ‘healthy’ cuts to their fixed rates as well, although these won’t challenge banks in the same way their floating rate could.

Wholesale rates are still falling. They are low enough to support these new low rate offers, and allow borrowers to negotiate hard for below-card rates.

The mortgage market is all about haggling, especially if you have at least 20% equity in your property.

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 cash incentives are still there for some banks (including Kiwibank) and while we thought they might disappear altogether, they haven’t and they are still worth keeping an eye on. You can see see the current non-rate home loan incentives here.

The new floating and fixed mortgage rates compare today as follows:

below 80% LVR Floating  1 yr  18mth  2 yrs   3 yrs   5 yrs 
    % % % % %
6.24 4.89 5.55 4.99 5.59 5.79
ASB 6.25 4.69 5.15 4.89 4.99 5.65
5.99 4.69   4.69 5.19 5.65
Kiwibank 6.15 4.79   4.65 4.99 5.50
Westpac 6.15 5.39 5.39 4.69 5.49 5.79
6.20 4.89 4.89 4.79 4.99 5.59
HSBC 6.35 4.49   4.49 4.49 5.29

6.14 4.99 4.85 4.99 4.99 5.59
6.24 5.45 5.59 4.79 5.40 5.85