Mortgage wars: Banks prune interest rates
Sharper offers reflect expectations OCR will stay put this year, say economists.
Banks have started cutting interest rates as the busy house-hunting season heats up.
From today, mortgage holders and prospective home buyers with at least 20 per cent deposit are being offered a three-year fixed home loan rate of 5.59 per cent at BNZ, down from the bank’s previous three-year rate of 5.99 per cent. Kiwibank also cut its two-year rate by 20 basis points to 5.55 per cent. According to industry experts, consumers should expect better deals from other major banks soon.
The lower rates could cut years off some mortgages, saving homeowners thousands of dollars in interest repayments.