CBS Canterbury to lead market with 5.75% 1 year mortgage rate

CBS Canterbury told interest.co.nz they were introducing a special new one year mortgage rate at 5.75%. The new rate will be the lowest mortgage rate on offer in New Zealand, surpassing BNZ’s previous market leading 5.95% for six-months.

CBS Canterbury will join TSB, BNZ and Kiwibank as the only lending institutions in New Zealand offering mortgage rates below 6%. Others are expected to follow the downward trend with the Reserve Bank of New Zealand expected to cut the Official Cash Rate by at least 100 basis points to 4% or lower on Thursday.

On Monday, Prime Minister John Key urged banks to pass the RBNZ’s OCR cuts on to interest rates, saying: “They are the lubricant that allows the economy to keep operating.”

Some conditions will apply to the new rate. This story will be updated with the conditions.

This article has kindly been republished courtesy of interest.co.nz.  To view this article and other news updates from interest.co.nz click here.

Posted: 28 Jan 2009

News articles