TSB cuts mortgage rates to new record low of 5.3pc

TSB Bank has lowered its 6 month fixed mortgage rate to 5.35 per cent from 5.50 per cent, effective September 10, 2009.

This change comes on the eve of the Reserve Bank review of its official cash rate, and its Monetary Policy Statement.

5.35 per cent is the lowest mortgage rate on offer in New Zealand at this time.

Short term fixed mortgage rates are lower now that at any time during the 2003-2004 so-called "mortgage war"

Kevin Murphy, deputy CEO of TSB Bank told interest.co.nz that this rate was the lowest they had ever offered "and our records go back more than 40 years."

"We have the lowest 2 year fixed rate in the market at 6.35 per cent," he said, also noting that they have noticed recent demand for terms shorter than 2 years.

TSB is not expecting any change to the OCR tomorrow, and are not expecting any imminent change to their variable mortgage rate.

INTEREST.CO.NZ