Bank of New Zealand is offering customers a two-year home loan rate not seen in at least a quarter of a century.
BNZ’s new 3.99% rate will be on offer from Tuesday 13 November and is available on the bank’s Two Year Classic rate.
“The new two-year fixed rate highlights BNZ’s commitment to help more New Zealanders realise their home ownership ambitions,” says BNZ General Manager, Retail Network Logan Munro.
In terms of the historic nature of the new rate, BNZ’s Chief Economist, Tony Alexander says “Sustained low inflation, the effectiveness of the Reserve Bank’s LVR rules and the recent cooling in the New Zealand housing market in spite of still strong economic growth have combined to provide a unique set of interest rate conditions that lenders can take advantage of.”
“The new low rate, fixed for two years, is a real bonus for both current and aspiring home owners who can have the confidence of locking in an interest rate not seen in BNZ’s proud history,” says Mr Munro.
“The security and comfort the two-year fixed rate will provide borrowers is especially important for new home owners who’ll be able to plan their budgets knowing their mortgage rate won’t change for at least 24 months.
“The new rate comes at a good time for home owners and new buyers as the spring home buying season is getting into full swing,” says Mr Munro.
The new rate is available to residential owner occupiers with at least 20% equity, and is available until the end of November. “Anyone considering buying their first home or changing their home lending arrangements should get in touch, so we can discuss the best options for them,” says Mr Munro.
BNZ’s home lending team is available on 0800ASKBNZ, online at bnz.co.nz, through a BNZ branch or customers can contact a BNZ mobile mortgage manager.