Heartland Bank has announced the lowest home loan rate in New Zealand history.
The New Zealand-owned bank revealed a one year fixed loan rate at 1.99 percent.
This is the lowest fixed-term interest rate in an already low market, according to a press statement released on Monday.
To be eligible for Heartland Home Loans, customers must be a New Zealand citizen purchasing a standalone, single section house in a major New Zealand centre, and have a deposit of at least 20 percent.
In addition to this, Heartland is also offering a fixed two-year rate of 2.35 percent and a three-year rate of 2.45 percent.
Westpac chief economist Dominick Stephens told The AM Show interest rates needed to be set at the right level to offset any uncertainty around COVID-19.
"We've been struck by this big event - the pandemic - which is going to cause a recession. The trick is for the Reserve Bank to set interest rates at the right level."
ASB, ASB, BNZ, Kiwibank and Westpac are also advertising a lower fixed rate at 2.55 percent per annum.
