SBS Bank is a New Zealand bank headquartered in the South Island and has just come out with 3.95% interest rate for home loans fixed for 2 years.
Two things to note are:
- The rate is only available for Residential and Residential Investing lending with a minimum of 20% equity (or greater when Residential Investing lending restrictions apply)
- If you are not already an existing SBS bank customer, you have to borrow at least $100,000.
This is one of the lowest rates in the market and just shows how competitive the lending industry is at this moment.
On the other hand, banks have tightened their lending criteria (ie using actual expenses instead of a “standard” expense when modelling how much to lend a client). But on the other hand, they are still fighting hard for customers.
Other banks are yet to follow SBS bank’s lead.