Banks drop fixed mortgage rates for new borrowers

The Bank of New Zealand is among three banks which have dropped their fixed mortgage rates for new borrowers.

The move, by the BNZ, HSBC and The Co-operative Bank, bring them in line with other banks which have cut fixed rates in the past couple of weeks.

Generally, banks have dropped their fixed rates at least half a percentage point, responding to global economic conditions.

Although banks have not dropped their floating rates, anecdotal evidence suggests many customers have been able to negotiate lower rates if they have a strong equity position.

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