Following ASB, which cut a rate earlier this week, ANZ has now cut -10 basis points off its two year fixed mortgage offer.
The new 'special' rate is now 4.75%. The new 'standard' rate is now 5.25%.
This move suddenly takes ANZ's offer to be the lowest carded rate for two years for any bank (other than the 4.29% offer by HSBC Premier).
ANZ's 'specials' are available to customers with at least 20% equity, an ANZ transactional account with salary direct credited, plus any ANZ credit card or insurance. 'Specials' are not available with any package discount plans.
The last time ANZ changed a home loan rate was on July 1, 2017 when it raised its one year rate.
Wholesale swap rates have been trending down since July 4, 2017 when they reached 2.38% for a two year term. It is are now at 2.19%. Other than that July spike, the two year swap rate has been under 2.25% since early May.
The last time ANZ changed its two year rate was in early May when it was raised +6 bps from 4.79% to 4.85%. This latest change takes the ANZ two year rate back to where it was in early February 2017.
Update: Westpac has also cut its two year rate. It reduced its 'special' by -6 bps to 4.79% and cut its 'standard ' rate by -10 bps to 5.19%
In addition, yesterday, the Co-operative Bank announced it had trimmed its three year rate to 5.09%, matching almost all other banks for that term.
See all banks' carded, or advertised, home loan interest rates here.
Here is a snapshot of the fixed-term rates on offer from the key retail banks.
| below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | % | |
 |
4.99 | 4.55 | 5.15 | 4.75 |
5.59 | 5.89 | 6.09 |
 |
4.95 | 4.45 | 4.70 | 4.79 | 5.09 | 5.59 | 5.79 |
 |
5.35 | 4.59 | 5.05 | 4.79 | 5.09 | 5.89 | 6.09 |
 |
4.99 | 4.45 | 4.79 | 5.09 | 5.75 | 5.99 | |
 |
5.25 | 4.59 | 5.15 | 4.79 |
5.09 | 5.89 | 5.59 |
 |
4.80 | 4.59 | 4.75 | 4.85 | 5.09 |
5.55 | 5.75 |
 |
4.85 | 4.09 | 4.09 | 4.29 | 4.89 | 5.29 | 5.59 |
 |
4.99 | 4.59 | 4.85 | 4.85 | 5.25 | 5.65 | 5.85 |
 |
4.85 | 4.55 | 4.75 | 4.79 | 4.99 | 5.65 | 5.79 |
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB Bank still has a ten year fixed rate of 6.20%.
22 Comments
I can't remember a correction happening so fast, why are banks dropping when not forced to ,hope people don't start panicking, specially after the election, it's starting to get hard to decide if national and co or labour and co would make any difference to the housing market , specially with peters
Our household has a decent income, largely because I work a second job letting us repay the bulk of the mortgage quickly. Around six weeks ago I made a large lumpsum mortgage repayment. I soon had a call from a friendly bank employee. He was almost begging me to "leverage up". His unsolicited words. He seemed desperate to get a refreshed claim on our income stream. I was left wondering if theres big trouble brewing in this banks mortgage book.
In line with this?
https://www.consumerprotection.govt.nz/consumer-law-and-your-rights/cre…
Guessing they are wanting to lend more, maybe because house sales have slowed. So it is a bit of a race to the bottom. Removal of the LVR may help get first home buyers onto the ladder of fire fasters too. Gives banks the ability to also lend out more. But is it really the best thing for first home buyers? Or do with need a DTI. Surprised no political party has really talked much about introducing a DTI.
Thanks for the info. I don't mind two year terms if the rate is low enough and the bank throws in some cash. They are more likely to offer cash back if you fix for 2-3 years. Any shorter and the cannot sell the cashback to their manager, any longer and you are stuck with a high rate for 4 or more years. So far two yeas has been the sweet spot.
Declining interest rates are in the best interests of housing affordability. A leg up for first home buyers would be a good thing right now.
But the flip side of the coin is that if the trend continues, the current softening in the housing market may be short-lived.
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