Twelve lenders cut fixed rates

Kiwibank put pressure on the major banks today by dropping its one year rate by 10 basis points to 6.15% which is the lowest rate for banks alongside National Bank. HSBC may have an even lower rate of 5.99% but it also has eligibility criteria  that you must have at all times a minimum value of $500,000 in loans with HSBC or a minimum value of $100,000 in savings and investments.

TSB Bank started the week off by making its two year-rate the lowest for all lenders after a six basis point (bp) cut to 7.09%. TSB also dropped its four-year rate by 30 bps to 8.20% and its five-year rate fell 15 bps to 8.50% with both now in line with the median for banks.

ASB, BankDirect and Sovereign also made welcome reductions to its longer term fixed rates.  All three lenders dropped their 18-month terms by 35 basis points, two-year rates were cut 45 points and three-year rates went down by 25.  NZ Home Loans made the same adjustments to its two and three-year rates.

ASB and BankDirect's three-year rates are now the lowest at 7.70% alongside PSIS which also cut its three year rate as well as its four year rate to 8.20% which is the lowest rate for non-bank lenders.