Rate cuts for fixed loans
BNZ has reduced some of its fixed mortgage rates following last month’s cut in the OCR.
The bank is lowering its one-year fixed rate by 0.16% to 6.29% and its two-year fixed rate by 0.10% to 5.79%, effective immediately.
Equal rates for all equity levels
BNZ’s new rates apply equally to borrowers with 20% equity and those without – unlike the previous 0.60% rate difference – though low equity premiums will still be determined by individual customers’ equity positions, 1News reported.
Broad rate cuts following OCR reduction
BNZ is not alone in adjusting rates; all major banks have been cutting home loan rates since the Reserve Bank reduced the OCR to 5.25% last month.
In addition to mortgage rate cuts, term deposit rates are also being lowered.
Last week, BNZ reduced rates on four of its term deposit options, and Kiwibank followed suit, announcing cuts to both its fixed home loan and term deposit rates on Tuesday.
These adjustments reflect the broader trend in the banking sector as lenders respond to the latest OCR changes, making borrowing conditions slightly more favourable for home buyers.
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