Heartland launches 1.85% mortgage

The challenger bank has reduced its direct-to-customer online mortgage to 1.85% for one year, has cut floating rates to 1.95%, and slashed its revolving credit loan to 2.35%.

Each are the lowest on offer in New Zealand, with the one year fixed mortgage the lowest rate on record.

The one year rate is comfortably cheaper than The Co-operative Bank's 2.09% rate. The big banks all offer 2.25% home loans on one year terms. 

The floating rate is also well ahead of rival offerings. KiwiSaver provider Simplicity offers a 2.25% mortgage rate to members buying their first home, but the cheapest non-bank rate in the market behind Heartland is Resimac's 3.39% variable loan.