BNZ is again cutting its fixed housing loan rates, effective immediately, after a number of similar recent moves across the sector.
The industry-wide trend of mortgage rate cuts follows the Reserve Bank’s decision to lower the OCR earlier this month.
BNZ said in a release this morning that both its classic and standard rates were now 6.85% (down from 6.89%) for a six-month loan, 6.45% (down from 6.55%) for a one-year loan, 5.99% (down from 6.15%) for 18 months and 5.89% (down from 5.99%) for two years.
A three-year loan is now at 5.79% (down from 5.89%), while four- and five-year rates are now at 5.69% (also down from 5.89%).
Today’s move comes after BNZ yesterday announced it was lowering some term deposit rates.
When BNZ lowered fixed rates last week, it also said it was moving to a single set of fixed home loan rates, instead of offering different rates to those with 20% equity to those without.
Previously there was a .60% difference in the rates.
Low equity premiums will still be applied based on the individual customers’ equity positions.