BNZ has cut most of its fixed home loan rates from today.
It’s the second cut to interest rates BNZ has made since the Reserve Bank cut the official cash rate by 50 basis points on October 8.
Six of the banks’ standard fixed loan rates were dropped by between 0.04% and 0.40%.
The new rates will be effective as of today.
The biggest cuts were for five-year rates (dropping 0.40% to 4.99%), and two-year rates (dropping 0.16% to 4.49%)
Other cuts included six-month loans, which dropped to 4.79% (down 0.10%), 18-month loans, which fell to 4.45% (down 0.04%), a three-year loan, which decreased to 4.79% (down 0.06%), and a four-year loan, which dropped 0.10% to 4.99%.
Those with less than 20% equity in their property will pay a low equity interest rate premium.
On Monday, ASB dropped several of its fixed mortgage rates, as did ANZ last week.
The major banks lowered their floating rates after the Reserve Bank slashed the official cash rate by 50 basis points.
BNZ’s move comes after new data from Stats NZ, also released on Monday, revealed inflation had risen to 3.0% and now sat at the top of the target band.
For savers, BNZ yesterday lowered all rates on term deposits except for one year and five year terms.
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