This new interest rate sits third on the list of the lowest two-year rates. They’re only behind ICBC who are still offering 3.18% and China Construction Bank who are offering 3.19%.
All three of these banks are Chinese-owned and have a different way of operating to the ‘big five' banks in New Zealand. Their presence isn't as significant in the New Zealand market, and while they’re able to offer lower rates, there are restrictions in their level of flexibility and service within New Zealand.
As a refresher, the majority of the banks are currently offering an interest rate of 3.55% for two years. With the OCR remaining unchanged at this stage, we don't expect any movement towards where the Chinese banks are sitting.
For more information on interest rates and the full list of current rates, check out our mortgage rates table.