TSB has announced a new one-year fixed home loan rate of 5.99%, saying it’s “getting a jump on the big four banks”.
The new rate, requiring a 20% minimum deposit, comes into effect on Monday.
It’s current one-year home loan rates are a special rate (minimum 20% deposit) of 6.29% and a standard rate (less than 20% deposit) of 7.09%.
None of the “big four” currently advertise one-year rates below 6%.
For applicants with a minimum of 20% equity, ANZ, ASB, BNZ and Westpac offer 6.19%.
TSB’s general manager of product and marketing Nick Herbert said: “We know many families have been doing it tough in the last few years with the high cost of living.
“Easing inflation and the declining Official Cash Rate will be welcome relief for many stretched Kiwi households, so we want to make sure our customers can get the benefit of lowering rates.
“This is the right thing to do, and we’re proud to deliver a cut to the all-important one-year rate after the recent RBNZ announcement and deliver some relief for our customers.”
He said it was the first time TSB has advertised a one-year rate below 6% since December 2022.