Lenders slash rates as mortgage market competition grows
BNZ has cut its short-term fixed home loan rates, with changes effective June 18 for both new and existing customers.
The bank lowered its six-month fixed rate from 5.35% to 5.29%, and its one-year fixed rate from 4.95% to 4.89%, reflecting easing wholesale funding costs and market expectations of further interest rate cuts.
The updated interest rates apply to both residential owner-occupied and residential investor home loans. A low equity premium continues to apply to new or existing lending over 80% LVR.
BNZ’s standard variable rate remains at 6.44%, with no changes to other variable lending products.
The move follows recent cuts by Westpac, Kiwibank, ASB, and ANZ, as competition intensifies in a softening mortgage market.
The rate cuts come after the Reserve Bank dropped the official cash rate to 3.25% in May – its lowest level since October 2022. RBNZ’s next Monetary Policy Committee meeting is scheduled for July 9.
