TSB is cutting its one-year fixed home loan rate to 4.39%, which is now among the lowest in New Zealand.
The bank said the move reinforces TSB’s ongoing focus on helping customers manage household costs and feel more in control of their finances.
According to Interest.co.nz, TSB’s rate is the lowest alongside ICBC, which also shows a one-year special at 4.39%.
TSB general manager of customer delivery, Penny Burgess, said the start of a new year is when many people reassess their finances and look for practical ways to ease pressure.
“A new year often brings a fresh look at budgets, goals and what really matters. With costs still weighing on many households, we want to give New Zealanders a clear, practical option that can help free up a bit of breathing room,” Burgess said.
Burgess said by providing this one-year rate, TSB is backing its commitment to helping people make the numbers work for them.
The New Zealand-owned bank said supporting customers through changing economic conditions is its purpose.
“We know every dollar counts,” Burgess said.
“Offering this rate is one of the ways we can help people feel more confident about their financial decisions as they plan their year ahead.”
TSB encouraged homeowners to review their lending and consider whether switching banks could make a difference.
This comes a day after ASB announced it was hiking some of its longer-term home loan rates while cutting its shortest offering.
ASB said its six-month fixed home loan rate would drop 6 basis points (bps) to 4.59%.
Its one-year fixed interest rate will increase 10bps from 4.49% to 4.59%.
ASB is also increasing its two-year fixed mortgage rate by 20bps to 4.95%.
Meanwhile, its three-year rate will move from 5.09% to 5.19%.
The new Reserve Bank Governor, Anna Breman, will make her first OCR decision – and the first for the year – next week.
The OCR was cut by 25bps to 2.25% in November.
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