Just when you thought mortgage rates couldn’t go lower, This week China Construction Bank came out with a all time low 3.15% rate.
In fact their 5 year rate is lower than some bank’s one year rate: coming in at 3.45% compared to the Big 4 banks who currently are offering 3.65% mortgage interest rate.
This may just be the beginning of a mortgage war.
China Construction bank now has the lowest rates in the market. Even though they do operate differently from the NZ and Australian owned banks, it will be interesting to see if the other banks would respond by dropping their rates. And if so, how far can they go?