ASB and Sovereign have both announced their new two-year fixed interest rates of 3.39%. TSB is also offering the same interest rate, through their 'Price Match Promise'.
It seems that the effect of Covid-19 and the expected drop in the official cash rate are driving mortgage rates downwards. Most of the other top five banks are still offering 3.55% for two years, but we won't be surprised if they’re willing to match ASB by next week.
Will rates drop further?
The question on many lips is will the OCR drop this month? We think that it is a huge possibility that the OCR will fall at the next announcement on 25th March. We expect that if it does, it will be a 0.25% drop, however some of the banks like ANZ are predicting a potential 0.5% drop. Watch this space.
If you have a mortgage that is up for a review within the next 60 days, it may be worth holding out to close to the review date before negotiating with the banks.