ANZ has changed home loan rates lower with some aggressive cuts.
They have cut their one year 'special' to just 3.69%, a market-leading rate for this term. That involves a cut of -16 bps.
They have also cut their six month fixed rate to 4.29, a reduction of -20 bps. The Cooperative Bank has a lower rate, but this is the lowest among their main rivals.
For eighteen months fixed, the cut in their 'special' rate is also -20 bps to 3.99%. ASB has a lower rate.
For two years fixed it is just a minor trim of -4 bps to 3.75%, matching ASB and BNZ. China Construction Bank has a lower rate.
For three years fixed, the have trimmed -6 bps for a new 'special' rate of 3.99%, matching Kiwibank.
'Special' rates are only available to customers with 20% equity or more and who have a transaction account into which wages or salaries are direct credited.
They made similar reductions to their standard rates.
These moves will no doubt draw a response from other institutions.
At the same time, ANZ has cut its term deposit rates across the board by between -10 bps and -25 bps. The key six month and one year TD rates are both down -15 bps. Out to three years all their term deposit offers are below 3% now (except for their eight month 'special').
more soon ...
Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at August 10, 2019 | % | % | % | % | % | % | % |
| ANZ | 4.29
 |
3.69
|
3.99
|
3.75
|
3.99
|
4.85 | 4.95 |
 |
4.49 | 3.85 | 3.89 | 3.75 | 4.05 | 4.35 | 4.45 |
 |
4.99 | 3.85 | 4.79 | 3.75 | 4.05 | 4.35 | 4.45 |
 |
4.79 | 3.79 | 3.79 | 3.99 | 4.29 | 4.39 | |
 |
4.99 | 3.85 | 4.79 | 3.79 | 4.05 | 4.35 | 4.45 |
| Co-operative Bank | 3.79 | 3.79 | 3.79 | 3.84 | 3.99 | 4.29 | 4.39 |
| China Construction Bank | 4.70 | 4.85 | 3.65 | 3.90 | 4.95 | 4.95 | |
| ICBC | 4.85 | 3.85 | 3.99 | 3.95 | 3.89 | 4.29 | 4.39 |
 |
4.85 | 3.79 | 3.79 | 3.79 | 3.89 | 4.19 | 4.29 |
 |
4.99 | 3.78 | 3.78 | 3.78 | 3.99 | 4.49 | 4.49 |
Incl price match promise |
4.29
|
3.69
|
3.89 | 3.75
|
3.99
|
4.35 | 4.45 |
In addition to the above table, BNZ has a fixed seven year rate of 5.95%.
All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here. And term PIE rates are here.
Fixed mortgage rates
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41 Comments
Have you had your head buried in the sand?
Tier1 capital, core funding requirements, reliance on local deposits.. ring any bells? These have all been explained many times on here.
https://www.interest.co.nz/banking/97389/rbnz-proposes-significant-incr…
I very much disagree, I am definitely in business with my bank, my solicitor, my valuer, my RE agent, my tradespeople etc…They provide a service, I pay them, that's called doing business and as such the relationship works as long as it's mutually beneficial.
A friend who is also a property investor goes further and he likens the team working with/for him to a sports team. He's the coach, the professions I mentioned above are the players, if one of them doesn't perform well he replaces them
So lets say hypothetically your "business" hits a brick wall and you're in trouble. Will your bank, solicitor, RE agent and tradespeople help you out?
E.g. "Sure Yvil, I see you're in trouble but we're in business 'together' so let us know who your creditors are and how much you owe and we'll split the costs evenly among us".
Your friend sounds a little bit delusional, just tell him to wait until the bank asks for their umbrella back.
No I wouldn't expect them to help me out (although if you have a long-term, good relationship some leniency could be given, i.e. ANZ generously offered 3.5% interest rates for up to $500k mortgage for people who lost their house in the Chch EQ, back then rates were typically 5.49%).
But the main point is why would I expect others to help me out if my business struggles? It's my business, I reap the benefits if I do well, I pay the price if I do badly. That's the same in any business relationship whether this business relationship is with your bank, your supplier, your customer etc...
Banks do care if you prosper because otherwise they lose you as a customer and they are out of money, that's why they provide many free business seminars to their business clients.
You seem to imply that banks are mean because "they don't care if you prosper". Banks are a business, just like a retail shop or service provider, as such their first duty is to be profitable, that applies to every business and it doesn't make them "mean businesses". If you want care and love, talk to your partner, your friends or your family.
The fallacy in this answer is that it does not reply to the original statement. Banks are not here to make business with you, they take advantage of a privileged position to make a profit out of it. It's been historically called "usury" but this term has (conveniently) changed its meaning to just apply to those loans that are considered corrupt or unethical. It also used to be considered a sin by many religions.
Nobody is forced to enter into business with a bank, if we deposit money or borrow some, we do it by free will. We are just like the banks in the sense that we want the best deal for ourselves. Will you say "I don't need 3.1% interest on my deposits, just pay me 2.2%, that'll do for me? Do I say I'll pay the bank more interest or bank fees than necessary? No we don't! That puts us in the same position as the banks and it doesn't make us bad people
Of course we are forced, at some point in your life we all may need something we cannot afford with our savings and most of these things have become unaffordable just because of credit growth and availability. How much would a home cost if credit would not be available at all or highly restricted to very specific scenarios?
B21 - understand that banks do not get their funding via the OCR, only from depositors and offshore funding. And understand, there is a limit to how far banks can take down deposit rates before they start losing such deposits (and they are now). Pays to be informed before you start casting aspersions
Of course they do not and have not claimed this in my statement, and because you're accusing people of being uninformed I'll ask you to please take some time to learn how most mortgages in Europe work and you'll find they use the Euribor as index meaning that if the CEB raises or lowers this rates will automatically change once they get reviewed which may happen at different periods, this does not affect banks from losing any deposits though.
China has first factory gate deflation in 3 years
https://www.wsj.com/articles/chinas-factory-gate-prices-slip-into-defla…
It's going to be so much fun watching the banks and RB try and stick this economy back together with strings and ceiling wax and other fancy things.
These low rates are here for a very long time by the look of it.
There will certainly be problems if rates do rise a few per cent, but don’t think they will as the world can’t afford to have this.
Must be difficult for People who rely on interest as it is not worth the effort with returns of under 2% tax paid.
People who are invested in property and are getting good yields are doing a good job for the country in providing accommodation for people who want or need to rent.
Pointless trying to talk the market down as some property is overvalued, however most well bought property continues to provide even better returns, with the interest rates at such lows!
Personally doesn’t affect us as our rental yields are very good.
Rateable values going up doesn’t mean that rates will go up, however we all know that they will rise just because.
Rates and insurance are just part of investing and if your returns are not sufficient to make it worthwhile then I would be considering selling, if the price is right
Just a whisper, hardly a murmur in fact from an undisclosable source. How would you feel about a city council classifying residential rentals as premises conducting commerce, and introducing, inflicting would be a better word, “commercial” rates as per any one business as considered appropriate by those in authority. There are some desperate money raising schemes about one might reasonably suspect, being plotted in rooms without windows to which few have a key.
So term deposits are now under 3%. The RBNZ wants people to invest in the inflated share and property markets, and businesses. A problem for them as the OCR drops further, and the NZ$ retreats, perhaps interest rates to zero or below (!), is that that other traditional store of wealth, gold, will mostly likely spike and provide superior capital gains (already is), although no yield.
As the possessor of three Hults Bruk axes, two sharp enough to shave with, I note with Interest that the picture shows a rather weatherbeaten axe, munching (couldn't call That slicing) into what for all the world looks like a completely rotten log.
Metaphors aplenty........
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