This rate is currently the lowest on offer in the highly competitive market. Its closest contender is HSBC’s special five year fixed rate of 5.29%, which comes with strict conditions.
SBS Bank chief executive Wayne Evans said current market conditions mean that the banks are all competing for the hearts and minds of the borrowing public.
He said the 4.99% rate is one of the Southland-based bank’s points of difference. (See how it stacks up here).
“As a members' bank, we have a degree of freedom and we believe in the importance of respecting our members and offering them some tangible benefits.”
The rate was made possible by the yield curve, he said.
“It has meant we will be lowering margin expectations, but we expect to see value over five years as we build up our relationships with members.”
SBS’s rate is only available for new residential lending over $100,000 with a minimum of 20% equity – although Evans said it is possible for existing members to change to the rate if they inject new lending of $100,000.
The rate will only be available for a set time period, but the bank is continuing to monitor the dynamic market conditions before it sets a final date.
To see how SBS's rate compares to others check out our table sorted from lowest to highest on the five-year term here
