SBS Bank drops its one year home loan rate by -10 bps to a market-leading 4.19%, raises other 'special rates. Sovereign also raises rates

SBS Bank has changed its home loan rates.

What makes this change interesting is that one change is down.

SBS Bank’s one year fixed rate is now 4.19%, down -10 bps, and that makes it the lowest rate on offer for that term in the market today (matching the HSBC Premier carded offer).

And it contrasts with other bank moves for that term which are raising one year rates. For example, ANZ raised its one year rate earlier this week to 4.45%, and the Co-operative Bank did the same, to 4.45%

Other changes were raising its two year ‘special’ fixed rate by +15 bps to 4.54%, raising its three year ‘special’ fixed rate by +20 bps to 4.95%, and raising its five year fixed rate ‘special’ to 5.55%, a +10 bps rise.

SBS Bank’s standard residential rates were left unchanged.

These increases are effective Saturday, January 21, 2017.

In wholesale money markets, short end swap rates eased lower since the beginning of 2017. Credit spreads also eased lower for bank’s who borrow wholesale.

Today’s changes alter who has the leading carded rates for mortgage borrowers. SBS Bank joins HSBC Premier to lead for a one year term, SBS Bank no longer leads for 2 years, and TSB Bank has the market-leading offers for 3 and 5 year terms with HSBC.

We should also note that Soverign has announced it will be raising its floating rate by +15 bps to 5.90%, plus its six month, one year and eighteen month rates each by +10 bps on Wednesday, January 25, 2015. This probably signals similar changes are coming from ASB next week.

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

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.45 5.05 5.25 5.49 5.70 5.85
ASB 4.49 4.65 4.79 5.09 5.49 5.69
4.49 5.05 4.79 5.09 5.69 5.79
Kiwibank 4.35   4.54 4.95 5.45 5.55
Westpac 4.49 5.05 4.79 5.09 5.69 5.49
             
4.45 4.60 4.75 5.05 5.45 5.55
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.19 4.45 4.54 4.95 5.29 5.55
4.25 4.45 4.49 4.69 5.10 5.29

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.