Fixed term mortgage rates are starting to fall again as the cost of wholesale money slides. Today, ANZ and the National Bank announced big cuts, reducing their 5 year fixed rates by up to 0.9% to 7.10%. Reductions in their 2, 3 and 4 year rates were made as well. ANZ-National has a 32% market share of New Zealand's residential mortgages. This follows similar moves by ASB on Christmas eve, and Westpac last week. Most other banks are expected to match or better these ANZ rates in the next few days. In fact, reductions in shorter term rates may also start falling soon. The wholesale 90 day bank bill rates have been falling fast in the past few days, as the markets start anticipating another big OCR cut by the Reserve Bank on January 29. These changes should allow significant reductions in floating rates, and fixed term rates of 6 months and 1 year. The latest rate changes, as they happen, can be found on our mortgage rate page, here >>>
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