The Coop-Bank is reducing its one-year fixed price first home special by -10 basis points to 1.99%. It cut other short rates, but raised most of the longer fixed rates
The cooperative bank introduced a special rate of 2.09% for first-time home buyers, which was set for one year.
Now it has lowered this rate by -10 basis points to just 1.99%.
It is “special” because of its conditions. These are that it must be “new loans” to the bank in excess of $ 200,000 and the loans must be used by applicants to purchase an owner-occupied primary home (as determined by the bank). Equity of at least 20% is required. This offer is also available for Kainga Ora First Home Loans.
Only Heartland Bank’s annual fixed rate is lower.
The Coop Bank has also reduced its six-month rate by -6 basis points to just 2.19% and the 18-month rate by -6 basis points to 2.39%.
Their 3, 4, and 5 year rates are all going up, essentially to the benchmark levels the major banks recently moved to.
The Coop Bank’s interest rate changes will come into force on Thursday, June 17, 2021.
The lowest fixed term interest rate at any bank is still 1.85% on Heartland Bank. And the highest rate for a fixed term is ANZ’s new five-year rate of 4.39%. This is the widest / steepest since 2012.
One useful way to understand these changed mortgage rates is to use ours Full-featured mortgage calculator. (Time deposit rates can be calculated using this calculator).
And if you already have a fixed-term mortgage that you don’t want to renew at this point, ours Break fee calculator can help you assess your options.
Here is the updated snapshot of the currently lowest advertised mortgage rates from the major retail banks.