Rate cutting by banks has continued over the weekend morning with both ASB and Westpac reducing selected interest rates, and this morning BNZ cut a key mortgage rate.
Home loan rates
Westpac has followed ANZ-National and cut its one year fixed mortgage rate to 5.25 per cent. This rate is the lowest unrestricted home loan rate for the one year fixed term by any bank, although Kiwibank does have a 4.99 per cent 'Special' for borrowers who have 30% equity in their property.
This morning, BNZ cut its 18 month 'Classic' home loan rate to 5.10 per cent from 5.89 per cent.
Because swap rates have fallen sharply across the board, most banks will be responding to rate pressure from customers and competitors with a new flexibility on fixed-term mortgage rates. interest.co.nz analysts expect other banks to follow the market down with their own cuts to advertised rates in the next week or so.