The bank has looked to the Classic loans as being it "hero" products which are used to entice borrowers with competitively priced, and often-market leading, rates. It has never offered a full range of rates with Classic, rather choosing price points and specific terms based on what is happening in the market.
However, it has decided to remove the Classic range and offer lower rates across its card for Standard and Fly Buys products.
This move comes after it lost the GlobalPlus Airpoints deal to Westpac and as it eyes up a return to the mortgage broker market.
In terms of rate changes BNZ has taken 30 basis points off its six month rate, bringing it down to 5.59%.
It has reduced its one year fixed rate to 5.49%, a reduction of 40 basis points from its previous standard rate, and 20 points lower than its now-defunct Classic rate.
The key two-year fixed rate is priced at 5.39% which equals the old Classic rate but is a full 80 points lower than its previous Standard rate.
Going out a year the three-year fixed is 5.55%; 74 bps lower than its previous Standard rate and just four points less than its previous Classic rate.
It's a similar story with the five-year fixed rate which is now 5.75%. The bank has also reduced its seven-year rate to 5.99%.
