Three-year fixed mortgage rates have fallen below 4 per cent at two major banks, and experts say the Reserve Bank’s more pessimistic shift is behind the record low deals.

Until now, sub-4 per cent rates have been offered for one- and two-year fixed terms, but on Friday BNZ cut its three-year term to 3.95 per cent – down from 4.2 per cent – matching a move by rival ASB bank.

Locally owned TSB bank will also offer the same rate as part of its promise to match any …
Banking Industry News