SBS is running a special offer of 4.39 percent for one year for first-home buyers who have from 5 percent deposit. Photo: fantasista/123RF
Major banks may be focusing on offering 4.99 percent to buyers fixing for two years - but one smaller player has come into the market offering significantly less.
SBS is running a special offer of 4.39 percent for one year for first-home buyers who have from 5 percent deposit.
It cannot be used by existing mortgage-holders.
Glen McLeod, head of Link Advisory, said there was also $2000 cash back on offer, $1000 for SBS insurance, and a $1000 top-up to KiwiSaver if buyers were with the SBS scheme.
He said there would be fish hooks that borrowers needed to understand, such as having to stay with SBS for a set amount of time, but it was worth considering.
He said SBS seemed to be trying hard to compete for first-home buyers borrowers.
Added competition was important, he said, although at this stage the main banks were not matching the offer.
"That's really low for one year," McLeod said.
Other banks were advertising between 5.19 percent at Kiwibank and 5.49 percent at Westpac for one year.
McLeod said it was a tricky environment to be giving advice in at present because while the Reserve Bank had indicated the official cash rate was likely to fall further, international pressures were pushing rates up.
It was starting to get to the time where it was worth people thinking about fixing for longer terms, he said, if it suited their circumstances.
