TSB has moved to lower some of its mortgage rates ahead of the widely-expected lowering of the official cash rate tomorrow.
TSB Bank cut its one-year fixed home loan rate to 5.35% from today — a lower advertised rate than all the major banks.
It also cut its six-month rate to 5.89%, its 18-month rate to 5.49% and its two-year rate to 5.29%.
Customer delivery general manager Penny Burgess said: “We’re pleased to offer some mortgage rate relief for New Zealanders in what’s been a tough year.”
The OCR is expected to drop another 50 basis points, or 0.5% on Wednesday. The OCR is currently 4.25%.
Reserve Bank governor Adrian Orr made it clear in November that if the economic conditions persisted, the Monetary Policy Committee would be looking to cut again.
BNZ also announced a cut to its advertised 6-month fixed home loan rate, lowering it to 5.89% per annum from tomorrow.
It is now the joint-lowest of the five major banks.
Executive customer products and services Karna Luke said over the past six months a spike in customers choosing shorter terms had been seen.
“With more customers looking to fix for shorter terms, BNZ is actively looking for every opportunity to meet customer demand.”
What this OCR call means for you
Writing this morning, 1News business correspondent Katie Bradford said we are not quite at mortgage war stage yet, but banks have been dropping rates as interest in new loans heats up.
“As rates started falling last year, many mortgage holders started moving to shorter-term six-month fixed rates.
“That means many of those people are coming off those rates this year.
“Most six-month rates are now below 6% — a full point lower than they were a year ago.
“Some are even floating while they wait and hope for the best deal. In this economy, every cent counts.
“For savers, the news isn’t so good. Term deposit rates have been gradually slipping as banks adjust their rates downwards for borrowing.”
Read her full analysis here.
