The lowest EVER home loan rate in NZ – mortgages now from 2.49 per cent

low home loan rate

As we sit here in the middle of a COVID resurgence it seems that the New Zealand property market continues to defy commentators predictions and can stay out of the danger as long as New Zealanders continue to do their part in keeping COVID-19 from a full second wave.

As a sign of this confidence in the housing market there has been a further reduction in home loan rates with TSB Bank now offering a one-year home loan rate of 2.49 per cent.  That is the lowest ever home loan rate to be offered in New Zealand.
This staggering low home loan rate is understood to be a New Zealand market record and puts the TSB one year fixed rate offering at 0.06 per cent lower than all the other major banks in New Zealand.

 

Lowest home loan rates ever - who is offering them?

It’s not just one year fixed rates that are dropping.  The TSB Bank is offering a two year home loan at an amaxing rate of 2.65 per cent as of today.  Again, this beats any of the major other banks by 0.04per cent.  But every percentage point of a percentage point counts in these testing times.
When asked about these new record low home loan rates, the TSB General Manager Marketing and Customer Experience, Justine St John, said “TSB's new one and two-year rates was the lowest ever offered by the bank and the best currently offered by the major banks”.
"TSB is focused on supporting New Zealanders with consistent low lending rates at a time when Covid-19 continues to create economic uncertainty."
In addition to their own products if you see something else that takes your fancy the TSB has previously advertised that it will match any advertised fixed rate offered by an Australian bank.
"We're also pleased to give New Zealanders another reason to bank local and keep money revolving through our local economy at a time like this", St John continued.
It should be noted that these exceptionally low home loan rates are only available to TSB customers with at least 20 per cent equity in their property.  This contrasts to ASB Bank which announced last month that those with a smaller than 20 per cent deposit would be offered the same special interest rates of those with a deposit over 20 per cent.
It should be noted that choosing a mortgage can be incredibly confusing and the headline rates will often come with some hidden fees or small print that inexperienced borrowers may well be stung by later down the road.  As such, here at Money Compare we ALWAYS recommend that you seek independent financial advice from an expert.  We partner with a number of different independent financial advice providers and mortgage brokers who provide a service that offers a free mortgage health check for home owners looking to refinance and those looking to purchase their first home.


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This latest drop in home loan rates comes after the official cash rate was slashed to 0.25 per cent in May – this has led to all-time lows in home loan rates. The Reserve Bank has signalled this rate will be kept low for at least a year so this may not be as low as rates go from the lenders.  Kiwibank dropped its one-year fixed rate to 2.99 per cent in May, claiming at the time to be the first bank to offer a sub 3 per cent home loan interest rate. ASB and ANZ quickly followed suit, but this latest TSB home loan rate is the first below 2.5%
Will home loan rates drop lower?  Has there EVER been a better time to buy property if you are in secure employment or have funds available?  Get a mortgage health check today.  It is free, with no obligation and can give you a view on your borrowing capabilities and options.  You could literally save thousands of dollars by refinancing today.


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Tuesday, August 18, 2020