BNZ drops floating rate by 40bps

Media release
12 June 2015

BNZ has decreased its mortgage rate by 40bps in response to yesterday's drop in the OCR.

The interest rate on its floating home loan product, TotalMoney, will decrease from 6.74% to 6.34%. In addition BNZ will decrease interest rates by 25bps on three other mortgage products - standard variable, Rapid Repay and Mortgage One.

BNZ Director of Retail and Marketing Craig Herbison said he was delighted to announce the changes, which will benefit BNZ's existing and new customers.

"The cut to our TotalMoney rate is deliberately greater than the decrease in the official cash rate. The Reserve Bank has indicated another rate cut is on the cards and we're boldly anticipating that change with this competitive rate cut."

"A floating rate of 6.34% will give customers coming off fixed term rates the chance to pause and consider if floating is now the best option for them," Herbison said.

"Customers should also think about what they should do with the extra money that's not going to their mortgage - they might consider saving it or using it to pay off any other debt faster," Herbison said.

BNZ has also cut its Farm First Overdraft rate by 25 basis points due to the extra pressure currently being experienced by the farming sector.

BNZ confirmed there would be no immediate changes to term deposit rates in response to yesterday's drop in the OCR.

The change in interest rates comes into effect for existing customers on 28 June 2015. New customers will be eligible for the rates from this Saturday, 13 June 2015.