Banks honing loan specials

Working out your plan to save a

deposit for a home is daunting. MORTGAGE rates are heading lower again, with both ANZ and ASB sharpening their pencils this week.

ASB’s new six-month, fixedterm ‘‘special’’ of 4.99 per cent is market-leading, as is its 18-month deal of 4.69 per cent.

It also introduced four- and five-year specials of 5.29 per cent and 5.39 per cent respectively, which are the best available of its ‘‘big four’’ peers.

To qualify for the special rates, borrowers are required to have a deposit or equity of at least 20 per cent.

The changes at ANZ were less dramatic. It reduced its rates in the six-month, one-year, 18-month and two-year categories. Floating: 5.99 per cent – BNZ Six-month: 5.29 per centKiwibank Six-month ‘special’: 4.99 per cent- ASB One-year: 4.79 per cent – Kiwibank One-year ‘special’: 4.49 – HSBC Two-year: 4.79 per cent – The Co-operative Bank Two-year ‘special’: 4.49 – HSBC

Despite the big lenders’ movements, most of the best rates are still offered by smaller locally owned banks, including Kiwibank and the Co-operative Bank.

The exception is the Londonbased Three-year: 4.99 per cent – The Co-operative Bank Three-year ‘special’: 4.49 per cent- HSBC Four-year: 5.40 per cent – The Co-operative Bank Four-year ‘special’: 5.09 per cent – HSBC Five-year: 5.59 per cent – SBS/ HBS Five-year ‘special’: 5.29 per cent – HSBC HSBC, which fired shots last month with a provocative 4.49 per cent special, leading the market across three terms. The aggressive deal comes with strings attached, as do most bank ‘‘special’’ rates.