More banks are falling into line with carded rate cuts to home loans.
BNZ is the latest. They have adopted the 2.29% one year fixed rate first claimed by Westpac.
But they have also trimmed their two year rate to 2.59% and matching ASB for that term.
It is starting to look like trailing banks are going to do the minimum to remain competitive.
ASB has also now cut its one year fixed rate, also to 2.29%.
Kiwibank have announced their one year fixed rate will reduce to 2.35% on Monday, January 25, 2021.
Carded rate changes are one thing, but on the front lines, most banks will match the market lows of their main rivals if you ask them (provided your financials are attractive enough).
Currently, the lowest one year rate is from Heartland Bank at 1.99%.
The lowest 18 month rate is from HSBC at 2.25%.
The lowest 2 year rate is from Heartland Bank and HSBC at 2.35% and TSB's 2.49% also undercuts the main bank levels.
If banks use that funding line, they can still keep their margins intact with rates down to about 2%.
Remember, the RBNZ's Funding for Lending program is in place, allowing banks to access money at the OCR's 0.25%.
Only one bank has drawn $1 bln in the FLP line late so far, doing so late last year. $1 bln is enough to fund about 2000 home loans.
In today's move, BNZ did not change any of its term deposit offers at the same time.
Chaston, D. (2021, January 22). BNZ CUTS MORTGAGE RATES NOW TOO, QUICKLY FOLLOWED BY ASB. Interest.Co.Nz. https://www.interest.co.nz/personal-finance/108714/more-big-banks-slip-line-lower-one-year-fixed-rate-home-loan-offers-bnz
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