Which Banks Are Offering The Lowest Home Loan Rates?
We all want to know which bank is offering the lowest home loan rates.
As reported yesterday in our finance blog The Reserve Bank cut the OCR by 0.25% and we said that we would expect that the banks will drop the home loan rates to keep both the Government and The Reserve Bank happy; however we also said we expect they may then try to sneak up the rates quite soon after to compensate for the higher costs of international funding.
Who Offers The Lowest Home Loan Rates?
A number of the banks did drop the floating rates but not by the full 0.25% and some still have not adjusted their floating rates.
So what happened?
It is interesting to see which banks are offering the lowest home loan rates.
Highlighted in yellow are the Kiwi banks which interestingly are also the banks offering the most competitive floating interest rates and that is before most have made any adjustments following yesterday’s OCR announcement.
Highlighted in green is a non-bank lender that is also offering a very competitive interest rate. Until Kiwibank reduced their floating rate yesterday, Resimac Home Loans were the lowest.
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Mortgage Brokers Expect More Movement
While the OCR announcement yesterday was no surprise, it often does take the banks a little while to make the adjustments and so as mortgage brokers we will be keeping a close eye on what happens over the next few days.
None of the banks have moved their fixed rates yet either.
It is also important to remember that mortgage brokers are good at negotiating lower home loan rates from the banks, so while there appear to be some banks that are advertising the lowest home loan rates, a good mortgage broker may be able to get other banks to match or better those rates.