Despite the next OCR announcement being a couple of weeks away yet, it seems that banks are already starting to lower their mortgage rates.
For the first time, Heartland Bank is ahead of the rest with a remarkably low 2.89% for one year, 2.97% for two years and 3.39% for three years. The next closest to them is HSBC with a rate of 3.20% across their one to five-year rates and China Construction Bank is competing with 3.15% for their one and two-year rates, and 3.19% for three years. View all current rates here.
Heartland Bank’s slashed rates were a surprise and we believe it's unlikely that the other big banks will follow suit. In saying that, Westpac did cut their interest rates in the three to five-year space. Westpac is currently offering three years at 3.69%, four years at 3.79% and five years at 3.89%.
It may take another push from the likes of TSB, SBS or Kiwibank to also go below 3% for the big banks to really chop their interest rates as well.