BNZ has changed a number of interest rates today, including some key home loan rates.

They have a new 'special' two year rate of 4.99%, matching recent moves by others to this sub-5% rate by both Kiwibank and Westpac.

To qualify for this 'special' rate, you will need to have at least 20% equity in the property provided as security, and you will need to credit your salary or wages to a BNZ transaction account.

They have also reduced their one year standard rate by -16 bps to 5.19% which is not as sharp for this term as offers from ASB or Kiwibank, but unlike their other main rivals, it is a standard rate offer.

And they have reduced their standard three year fixed rate to 5.29%, a -20 bps reduction.

This new three year rate is very competitive, being the lowest bank offer rate in the market at this time. [Update: SBS Bank has subsequently announced a 4.99% three year rate.]

A low equity interest rate premium applies to any BNZ lending where the LVR is higher than 80%.

Banks are finding space to offer lower retail rates from the recent falls in wholesale rates. Having noted that, we also see these wholesale rates have risen today, up +3 to +5 bps.

BNZ have also announced reductions to their term deposit offers as well as some key savings rates, just as many of their rivals have done recently.

The new BNZ mortgage rates compare as follows on Tuesday morning: