Banking rivals tempt savers with more rate cuts

Despite a week of rate cuts from some of the bigger banks, SBS banks still has the lowest rate in the market.

The string of banks slashing their fixed home loan rates has lengthened again as two more players cut rates.

HSBC announced today it was cutting its fixed home loan rates to 5.29% across one, two, three, four and five-year fixed rates.

It now enjoys the lowest rates in the market for the two, three, four and five-year rates.

Kiwibank is also making rate cuts.

Kiwibank spokesman Bruce Thompson says the market is extremely competitive and banks are fiercely competing with each other.

“There are lots of changes but it’s a good thing for mortgage customers because they’ve got choice and they can either go on the variable and see what happens, or fix at probably historically low rates.”

He says in the 13 years Kiwibank has been operating, rates have never been this low.

The New Zealand-owned bank is cutting three, four and five-year mortgage rates on Monday next week.

The three-year rate will drop to 5.55%, with the four and five years down to 5.99% and 5.79% respectively.

But the new lower rates will not be around for long as the bank says the rates are “specials” and will only be available for a short period of time.

Earlier this week, both ANZ and Co-operative banks cut their rates.

ANZ cut its market-lending "special" down to 5.39%.

The special requires at least 20% equity, as well as an ANZ transactions account, a credit card or an ANZ insurance product.    

Co-operative Bank also announced a rate cut earlier this week, offering 5.89% for both its four and five year fixed rates.

But despite a week of rate cuts from some of the bigger banks, SBS bank still has the lowest rate, with its two year  fixed rate at 5.19%.