It has launched what is believed to be New Zealand’s first 10-year fixed rate home loan and it has priced it competitively at 5.89%.
The only other lender with a term of more than five years is BNZ which offers a seven-year term; however it’s offer is currently priced at 6.89%.
TSB’s 10-year loan is below what the other bank’s are offering for five-year terms.
"We’re delighted to offer New Zealand’s very first 10-year fixed home loan giving Kiwi families and property investors certainty to plan for the long-term with a competitive interest rate," TSB Bank chief executive Kevin Murphy said.
A 10-year rate will give borrowers certainty around interest rate repayments; however the break costs of getting out of such a long term would likely be expensive.
While this is a first for New Zealand long-term fixed rate loans have been offered in other countries for many years.
