Sister banks ANZ and National have cut their advertised one-year fixed mortgage rate by 40 basis points to 5.25%, pointedly noting that unlike the current 4.99% limited time special offer from Kiwibank, borrowers don't require a 30% deposit.
In a statement, ANZ Retail Managing Director Kerri Thompson said the cut -from tomorrow May 10 - took the group's one-year rate to its lowest point in 17 years.
"Domestic and international conditions mean wholesale interest rate markets have been volatile. There's currently a window for cheaper longer term wholesale interest rates that ANZ is taking advantage of and we're passing this on to customers," Thompson said.
"We're not sure how long this window will remain open. We hope to be able to keep it open for a while but we'll be reviewing it on a daily basis," she added. "This is ANZ’s lowest one-year fixed home loan rate since at least 1995."
The new ANZ and National Bank one-year rate is 49 basis points lower than their 5.74% advertised floating, or variable, rate.
The cut comes a day after SBS Bank cut its three and five-year fixed mortgage rates to advertised market lows. See more here. It also comes after significant falls in the swap, or wholesale, rates that banks themselves borrow at - see our chart below.
Thompson also noted that although Kiwibank currently has a 4.99% one-year special, the state owned bank's offer requires borrowers to have a 30% deposit. See all bank advertised home loan rates here. For its part, Kiwibank recently told interest.co.nz that its current special offer is proving its most successful one to date.
Meanwhile, ANZ is also cutting its six-month term deposit rate by 30 basis points to 4.00% from Thursday. See all advertised term deposit rates here.
Elsewhere, on Friday morning ANZ National said it had committed up to NZ$500 million for discounted mortgage lending in Christchurch.
Retail Managing Director Kerri Thompson said those building or rebuilding a property in Christchurch would be offered a one-year fixed home loan rate of 4.55%.
(Updated with Christchurch offer)
No chart with that title exists.
(Update adds ANZ and National Bank's advertised floating rate).
14 Comments
Hmm, is this the bank whose CEO stated that lending up to 95% LVR was reckless, unsustainable and should be discouraged - maybe he should tell his retail MD before she states you don't need a decent deposit to get into debt....?
And if the curve has come off where are the other rate cuts, rather than just the one term that allows to pull the pig tails of Kiwibank in the playground...?
Is it that the only time the major banks respond with genuine competitive measures that include margin reduction, is when KiwiBank initiates the action?
If so, it would seem not a bad idea to grow KiwiBank into a stronger and well capitalised bank, kept 100% in government hands, rather than be a smallish niche player.
ive been on 5.25 for over 12 months - and i suspect so have many others who ve pushed their bank - so not exactly earth shattering news.
i will be in contact with my bank guy this afternoon to see if i can get another downwards adjustment - lets see if NZ HEads is on the money...
Mortgage rates should be about 3.99.
As for the talk about the 'window' of low interest rates. And the offer is for a short time only. All just sales talk. Just rubbish. She has no idea where interest rates are heading. Sheis just wanting you to take their deal.
And if your bank is offering 100% mortgages to other people, using your deposit. Then it's time to withdraw your money and leave.
Now these are more like it:
Mortgage rates View rates in your area Mortgage type Today +/- Chart 30 yr fixed mtg 3.78% 15 yr fixed mtg 3.02% 30 yr fixed jumbo mtg 4.40% Auto rates View rates in your area Auto type Today +/- Chart 48 month new car loan 3.25% 36 month used car loan 4.36% 36 month new car loan 3.13%
How come our Car loan rates here are 14-15%?
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