BNZ Lowers Mortgage Rates Following OCR Drop and Simplifies Rate Structure
Thank you for reading this post, don't forget to subscribe!BNZ (Bank of New Zealand) has reduced all its fixed mortgage rates after last week’s decrease in the Official Cash Rate (OCR). The Reserve Bank recently lowered the OCR to 5.25%, marking the first reduction in four years. This change has prompted major banks, including BNZ, to lower their mortgage rates.
In addition to cutting rates, BNZ has decided to simplify its mortgage rate structure. Previously, the bank offered different rates depending on whether custome
rs had 20% equity in their property. There was a 0.60% difference in rates between custo
mers with higher equity and those with lower equity. Now, BNZ will offer a single set of fixed home loan rates for everyone, regardless of their equity percentage.
Karna Luke, BNZ’s Executive for Customer Products and Services, explained that this new approach means all customers can access the bank’s best home loan rates, even if they don’t have 20% equity. However, low equity premiums will still apply based on each customer’s individual equity situation.
The new rates BNZ is offering include:
- 6.55% for a one-year fixed mortgage
- 5.99% for a two-year fixed mortgage
- 5.89% for a five-year fixed mortgage
BNZ’s move follows similar actions by other major banks, such as ANZ, which also lowered some of their mortgage rates in response to the OCR drop. This trend provides potential homebuyers and homeowners with an opportunity to secure lower mortgage rates amid a shifting financial landscape.