TSB beats the big four

TSB is offering a 4.99% fixed rate mortgage for a one-year term.

It will be available to home buyers for the next three weeks.

TSB head of Product and Marketing Joe Bishop says his rate is lower than the big four banks.  See how it compares here.

“We know a lot of Kiwis right now are doing it tough in an environment of rising prices and interest rates,” Bishop said.

“So we want to make it easy for our customers to lock in a competitive home loan rate and have some certainty for the next year.”

The loan is only available to people with a deposit of at least 20%.

TSB has a marginally lower rate for six month mortgages than for its latest offer for one year mortgages:  4.89%, indicating the bank is gambling on retail rates following the OCR upwards later this year and next year.

Most rival banks to TSB have a one year fixed rate between 16 and 36 basis points higher than TSB.

However Heartland Bank is offering a slightly lower fixed rate for one year: 4.90%.