ANZ have cut their two year home loan rate 'special' even further this evening.
The change is effective Wednesday, May 28, 2014.
But to get this special rate, customers must have a minimum of 20% equity, direct credit their salary to an ANZ account, and take out a new ANZ credit card or ANZ insurance product.
The new rate is 5.85% which among the main banks is the same as that launched by Kiwibank on Friday. (But only 60% of a Kiwibank loan can be on that rate.)
However it is not quite as sharp as that offered by TSB Bank who have a two year 5.80% rate.
ANZ's customers can choose to have all of their lending on this 'special' rate or mix and match from the bank's range of other home loan rates.
In a competitive dig at the Kiwibank requirement where 40% needs to be on the floating rate, ANZ said "We want to be upfront with customers about the nature of their mortgage and not require them to lock some of their loan into a floating interest rate unless it suits them."
We saw further reductions in wholesale swap rates today, pushed lower by expectations of an ECB easing and very light US holiday trading.
See all banks' carded, or advertised, home loan rates here.
This is how the new ANZ rate compares:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.85% | 6.55% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.99% |
| Kiwibank | 5.85% | 5.85%* | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 6.19% | 6.25% | 7.40% |
| Co-op Bank | 5.85% | 5.85% | 5.99% | 6.25% | 6.99% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.70% | 5.85% | 5.99% | 5.95% | 6.79% |
| TSB | 5.70% | 5.85% | 5.80% | 6.25% | 7.40% |
* only as part of their 60/40 'special' deal. Otherwise 6.19%.
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1 Comments
Be careful fixing in a deflationary world.
Rates are likely to get sharper as borrowing volumes level or decline.
Floating places you in a more powerful position, and do some calculations on your break fees in 6 months or 18 months time. How many 10,000s do you want to pay the bank if you sell or move or refinance?
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