Several Lenders Update Fixed Rates
Effective 2nd May, several lenders in New Zealand have taken to a number of changes to their fixed and floating rates, including ASB, Westpac and Sovereign.
ASB lowered their 3 year fixed rate special to 6.25% p.a, and reduced their 2 year carded fixed rate to 6.19%p.a. The 3 year special is for a limited time only, so now is the time to take advantage of this great rate.
ASB’s 3 year special can be applied to new and existing home lending where there is a minimum of 20% equity in the security property i.e. a loan to value ratio (LVR) of 80% or less.
This special rate cannot be applied to packages or other ASB discounts and remains subject to customers having (or obtaining) all of the following:
· An ASB credit card and
· their main bank transaction account with ASB i.e. their salary, wages, business or rental income is credited to an ASB account.
ASB also increased their 6 month and 1 year fixed rates by 0.10% p.a.
|
ASB Product
|
Initial Rate
|
+/-
|
|
Housing Fixed 6 Months
|
5.65%
|
0.10%
|
|
Housing Fixed 12 Months
|
5.95%
|
0.10%
|
|
Housing Fixed 24 Months
|
6.19%
|
-0.30%
|
|
Special Housing Fixed 36 Months
|
6.25%
|
-0.04%
|
Westpac increased their floating home loan rates by 0.25% p.a. following the Reserve Bank’s increase to the Official Cash Rate by 0.25% p.a.
This rate increase is applicable immediately for new customers, whereas, the rate change will apply on 23rd of May for existing customers.
|
Westpac Product
|
Initial Rate
|
+/-
|
|
Choices Everyday
|
6.25%
7% if LVR > 80%
7.4% if LVR > 85%
7.75% if LVR > 90%
8% if LVR > 95%
|
0.25%
|
|
Choices Everyday Lo Doc
|
6.25%
|
0.25%
|
|
Choices Offset
|
5.99%
6.74% if LVR > 80%
7.14% if LVR > 85%
7.49% if LVR > 90%
7.74% if LVR > 95%
|
0.25%
|
|
Floating Base Rate
|
5.99%
6.74% if LVR > 80%
7.14% if LVR > 85%
7.49% if LVR > 90%
7.74% if LVR > 95%
|
0.25%
|
|
Floating Base Rate Lo Doc
|
5.99%
|
0.25%
|
Sovereign made several rate changes with a 0.10% p.a. increase to their 6 and 12 month fixed rates and a 0.30% p.a. reduction to their 24 month fixed rates.
|
Sovereign Product
|
Initial Rate
|
+/-
|
|
Go First Fixed 6 Months
|
5.65%
|
0.10%
|
|
Go First Fixed 12 Months
|
5.95%
|
0.10%
|
|
Go First Fixed 24 Months
|
6.19%
|
-0.30%
|
|
Go Fixed 6 Months
|
5.65%
|
0.10%
|
|
Go Fixed 12 Months
|
5.95%
|
0.10%
|
|
Go Fixed 24 Months
|
6.19%
|
-0.30%
|
|
Special Fixed 36 Months
|
6.25%
|
-0.04%
|
Sovereign also introduced a 36 month special rate of 6.25% p.a. for new and existing customers. To qualify, customers must have a minimum of 20% equity in their security property i.e. an LVR of 80% or less.
To find out more about the new special rates refer to the Lender News in iLend™ or contact your lender BDM.
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