National Bank lowers fixed term home loan rates

The National Bank has followed sister bank ANZ's lead and lowered its fixed term home loan interest rates.

The bank has lowered it one, two and three year rates by 15 basis points, to 8.25 per cent per annum, 7.80 per cent and 7.70 per cent respectively.

National Bank's four year rate fell to 7.60 per cent per annum from 7.85 per cent, and its five year rate fell to 7.55 per cent from 7.60 per cent.

Yesterday ANZ lowered its one, two and three year rates by 20 basis points, with the one-year rate now 8.20 per cent per annum, the two year rate 7.75 per cent and the three year rate 7.65 per cent.

Over the weekend Bank of New Zealand (BNZ) announced a one week special on six-month home loans, of 6.99 per cent. The bank's one year fixed rate is 8.4 per cent, while its two year rate is 7.7 per cent.

A Westpac spokesman said the bank had dropped its two year rate by 15 basis points to 7.8 per cent on Monday.

The home loan market has been expected to become more competitive as a chunk of fixed term home loans come up for renewal.

Fixed rate borrowing makes up 80 per cent of New Zealand's home loan market. In its March quarter Monetary Policy Statement the Reserve Bank said about 40 per cent of existing fixed-rate mortgages were set to re-price over the next 12 months.

- NZPA