Two-Year Fixed Rate Reels in Business for Bank of New Zealand
Bank of New Zealand said today that its two-year fixed rate for home loans is turning out to be a big winner with customers in the home loan market this year.
Bank of New Zealand’s general manager of personal financial services, Blair Vernon, said Bank of New Zealand had introduced the two-year fixed rate – effective from 23 February – to ensure Bank of New Zealand was setting the trend in the two-year fixed rate market. At about the same time as it introduced the 6.79% two year rate, Bank of New Zealand cut its other fixed home loan rates for terms of three years or more.
No other major bank has a two-year rate as low as 6.79%. National, ANZ, and ASB are currently offering 6.95%. Westpac is currently at 7.15%. On that basis, on a $300,000 home loan, Bank of New Zealand’s two-year rate offers savings of more than $450 per annum in interest payments relative to National, ANZ, and ASB, and more than $1,000 relative to Westpac
Mr Vernon said the two-year rate had attracted substantial new business for Bank of New Zealand.
“Over half of customers taking out
new loans with us in the last two weeks have taken a portion
of their loan on the two-year fixed rate. People recognise a
good deal when they see one, and this is a good deal,
especially when the overall trend in interest rates recently