Rate cuts continue despite RBNZ decision

Lenders continue to cut mortgage rates as the property market heads into the summer, despite the Reserve Bank's decision to keep the official cash rate on hold. 

On Friday, BNZ cut two of its classic home loan rates, slashing its one year to 3.49% for owner occupiers, and 3.74% for investors.

Its 18 month rate falls to 3.39% for owner occupiers, and 3.64% for investors, representing the second cheapest in the market behind Chinese lender ICBC.

BNZ's moves come after Westpac slashed its one year rate to 3.39%, joined by Kiwibank and ASB. 

Rates continue to fall despite fears the RBNZ's decision to keep the OCR on hold would lead to increased mortgage rates for borrowers. Wholesale rates rose in the aftermath of the decision, but lenders have continued to compete aggressively on price.

TSB has joined in on the act mid last week by reviving its price-match offer.

The domestic bank will match the nationally-advertised rates on offer from the big "Australian-owned" banks.

Justine St John, TSB's general manager for marketing and customer experience, said the campaign was relaunched amid "strong demand" for its last price match offer.

“When we made the decision in February to price match Australian banks it was a move never seen before in the New Zealand banking industry. Just as we were proud to lead the way then, it’s great to again give Kiwis another reason to bank locally.”

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