SBS one-year rate down to near market lows

Downward pressure continues in the mortgage market – SBS Bank has slashed its one-year fixed home loan to 2.19%, the third lowest rate in New Zealand.

The bank launched a sharpened rate lineup over the weekend, with its one year special at 2.19%, one year first home loan offer at 2.44%, and a standard rate at 2.69%.

The 2.19% rate is for owner-occupiers with a deposit of 20% or more, and for investors with a 40% deposit. The bank will also offer the low rate to first home buyers with a 10% deposit. 

The first year home loan rate at 2.44% is available to borrowers with equity less than 10%, and is supported by Kāinga Ora. 

SBS's standard rate, at 2.69%, is for investors with less than a 40% deposit, and movers with less than 20%.

The low rates continue a trend of bifurcation in the home loan market, with longer-term rates rising and shorter-term loans falling.

Shorter-term loans are more influenced by government bond yields, while longer-term rates are more influenced by wholesale markets.

SBS's 2.19% mortgage is the third cheapest in the market, behind Heartland's 1.99% mortgage, and The Co-operative Bank's first home buyer special at 2.09%. 

Take a look at the latest rates here.

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