The Chinese banks no longer have the lowest home loan rate in the New Zealand market - ANZ now does*. [Updated: This article has been updated to note Heartland Bank's recent low mortgage rate offer, which their CEO called "very much a trial".]
ANZ has cut its one year 'special' by -40 bps to just 3.05%. That is -10 bps lower that the 3.15% rate offered by China Construction Bank.
And it has cut -30 bps from its two year 3.65% rate taking it to 3.35%. That pips its main rivals ASB and Kiwibank who both have a 3.39% rate for two years.
At the same time, ANZ has taken a very chunky -25 bps off all its term deposit rates across the board (except for 30 days).
The 3.05% rate is the lowest home loan rate ever offered by a bank in New Zealand.*
This big change sorts out the home loan pricing position of New Zealand's largest bank which was being undermined by all its main rivals.
These are the first fixed rate home loan cuts since the emergency RBNZ OCR cut earlier this week.
And it sets up competitive responses which will probably come fairly soon. In fact TSB must be uncomforable with matching ANZ's 3.05% rate.
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The term deposit rate cuts will be a sensitive issue for all banks. They need them to be a "viable option for savers". That is because about two-thirds of bank funding depends on customer deposits (more than just term deposits however) and banks have obligations under the RBNZ Core Funding regulations.
But the hard truth is, lending demand is expected to wither under the pressures of the virus lockdowns so it is 'easier' to cut TD rates in this environment.
Wholesale rates have fallen to very low levels, reducing the costs on about a third of bank funding (especially for major banks) and even though these have been rising recently, they are still at very much lower levels than when current home loan pricing was decided.
Savers are paying for these low mortgage rates.
[* Heartland Bank has a trial program offering even lower rates.]
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 March 18, 2020 | % | % | % | % | % | % | % |
| ANZ | 3.65 | 3.05
 |
3.49 | 3.35
|
3.99 | 4.75 | 4.85 |
 |
3.89 | 3.45 | 3.75 | 3.39 | 3.69 | 3.79 | 3.89 |
 |
4.79 | 3.49 | 3.39 | 3.55 | 3.69 | 3.79 | 3.89 |
 |
4.29 | 3.45 | 3.39 | 3.65 | 3.99 | 4.09 | |
 |
4.79 | 3.39 | 4.25 | 3.55 | 3.69 | 3.79 | 3.89 |
| Bank of China | 5.15 | 5.25 | 5.35 | 5.50 | 5.70 | 5.99 | |
| Co-operative Bank | 3.49 | 3.49 | 3.59 | 3.59 | 3.89 | 3.99 | 4.09 |
| China Construction Bank | 4.70 | 3.15 | 3.15 | 3.19 | 3.30 | 3.45 | |
| Heartland Bank | 2.89 | 2.97 | 3.39 | ||||
| ICBC | 4.29 | 3.18 | 3.18 | 3.18 | 3.20 | 3.99 | 3.99 |
| HSBC | 4.19 | 3.54 | 3.54 | 3.20 | 3.69 | 3.79 | 3.89 |
 |
4.29 | 3.39 | 3.69 | 3.55 | 3.89 | 4.19 | 4.29 |
 |
3.89 | 3.39 | 3.55 | 3.55 | 3.89 | 4.45 | 4.55 |
| Price Match Promise | 3.05
|
3.39 | 3.35
|
3.69 | 3.79 | 3.89 |
In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.
Fixed mortgage rates
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44 Comments
You have to ask yourself "What is the underlying trend in property prices that this emergency lending rate, like Heartland's 2.89%, is trying to combat?" and that trends...is down. Otherwise, what's the point? (and no. Corvid19 isn't the reason! Oh, and just wait until the Credit Crunch hits - it will. Have you taken notice of those swap rates that David posts each day? They are calling higher lending rates - for those that can get access to funds - much higher, as this economic calamity unfolds. Borrow all you can now, and don't spend it!)
YES, Now this will open eyes to those Kiwis DGMers, that no matter what - RE industries is the safe bet even in uncertain times. WHY? consider these; All those Orr's team that decided OCR owned properties, 60% all Banks loan into RE production, From PM to all cabinet ministers all owned a properties, Govt. has recently announced those safe relief funds by future borrowing, and that as Ashley Church/property Gospel preacher indicated it's very sure to be channeled to service the home loan for those redundancy workers, more than 60% NZ populations is herded to 'own' property, including 'investors' - in order to maintain the 'market stability' at any cost? overall tax payers, will be administered to do the bail out (this method we call it; using socialist method to preserve the capitalist, known as Neo-Liberalism) - Finally? following the UK, soon all NZ Banks will banded together to provide 'mortgage holiday' shed a bit from their previous accumulated forever profit - in uncertain times, when greed capitalism to be consume by it's own action - the answer will always be: Nationhood tax payers bail out. SO? why the wait? - go get those home loan while the interest is down, this is the once in a life time golden opportunity, those house current prices won't just sit there.. get rid of your doubt - as it has been shown recently when buying a concert ticket using Viagogo, or Airline tickets online - when the countdown timer of current price offering finish, then your only option is to buy at more higher prices.. then tick tick tick.. before the next price up - you've been warned, Do Not Follow any of those DGMers fake news out there - Buy Those RE Now! - It can only go up, as the full systems already herded behind it.
The tragedy is, that there is a lot of truth in your sarcasm. Turkeys and Christmas etc.
But it's not going to help. When The States has finished growing $3 trillion at The System; that's what it will end up being, and it hasn't worked, we'll all get to see what's what.
Heartland bank currently weighing in with 1.99% fixed rate home loans. Not much good if house prices are so high you'd need to sell a major organ just for a deposit :(. Source: https://www.finder.com/nz/mortgages
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