A major lender has announced further changes to its fixed-term home loan rates following the latest Official Cash Rate cut.
In a statement this morning, BNZ said reductions across most terms were effective from today.
While the six-month fixed rate remains unchanged at 5.09%, borrowers locking in for longer periods would see modest to significant rate cuts.
The one-year and 18-month terms both dropped by four basis points, now sitting at 4.75% – the joint lowest rate with Westpac.
The two-year term fell 14 basis points to 4.75% as well – also the joint lowest.
The most notable reductions were in the longer-term offerings.
The four-year fixed rate fell by 30 basis points to 5.09%, while the five-year rate was down 20 basis points to 5.39%.
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The three-year rate also fell four basis points to 4.95%.
Those with less than 20% equity in their property will pay a low equity interest rate premium.
It comes after the Reserve Bank chose to cut the Official Cash Rate last week by 25 basis points to 3%.
The widely expected move saw banks quickly drop their floating rates – the cut had largely been priced in prior to the central bank’s announcement.
The Reserve Bank had also signalled the OCR could be lowered further depending on the speed of New Zealand’s economic recovery.
“If medium-term inflation pressures continue to ease as expected, there is scope to lower the OCR further,” it said.
