ANZ has trimmed most of its fixed home loan interest rates.
Most of its cuts are not to market leading levels, but its new one year fixed rate 'special' is.
At 2.79%, it is the lowest fixed mortgage interest rate, and matched the current offer from the Bank of China.
And at that level, it is at least -20 bps lower than any of its main rivals.
But its one year rate isn't the only cut by ANZ.
Its eighteen month rate is down by -15 bps to 3.05%. This is not an especially competitive level.
Its two year fixed rate is down by -30 bps to 2.95%. That is a competitive rate, lower than any of its main rivals.
Its three year 'special' is down -64 bps to 3.35%. But that rate isn't too different to the 3.39% offered by BNZ and Westpac.
ANZ have also cut its four and five year rates but these were never competitive and the new levels aren't either.
Their announcement wasn't paired with any announcement on term deposit rate changes - but savers can be almost certain more cuts are coming in a day or so.
ANZ did say: “As always, we will be working hard to balance the needs to borrowers and savers in setting new deposit rates, although this is challenging in the current low-interest-rate environment.”
Here is the full snapshot of the advertised lowest fixed-term rates on offer from the key retail banks at this time.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at May 21, 2020 | % | % | % | % | % | % | % |
| ANZ | 3.65 | 2.79
 |
3.05
|
2.95
|
3.35
|
4.45
|
4.55
|
 |
3.89 | 3.05 | 3.25 | 2.99 | 3.69 | 3.79 | 3.89 |
 |
4.79 | 3.05 | 3.05 | 2.99 | 3.39 | 3.49 | 3.59 |
 |
4.29 | 2.99 | 3.39 | 3.65 | 3.99 | 4.09 | |
 |
4.79 | 3.05 | 4.25 | 2.99 | 3.39 | 3.49 | 3.59 |
| Bank of China | 3.89 | 2.79 | 2.89 | 2.89 | 3.19 | 3.79 | 3.89 |
| China Construction Bank | 4.70 | 2.80 | 2.85 | 3.19 | 3.30 | 3.45 | |
| Co-operative Bank | 3.09 | 3.09 | 3.35 | 3.35 | 3.69 | 3.79 | 3.89 |
| Heartland Bank | 2.89 | 2.97 | 3.39 | ||||
| HSBC | 3.49 | 2.80 | 2.85 | 2.89 | 3.50 | 3.60 | 3.70 |
| ICBC | 4.29 | 3.18 | 3.18 | 3.18 | 3.20 | 3.99 | 3.99 |
 |
3.89 | 3.09 | 3.39 | 3.39 | 3.69 | 3.79 | 3.89 |
 |
3.89 | 2.89 | 3.35 | 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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89 Comments
About time ANZ pulled figure. Their lending margins are still 1.5% on equivalent deposits.
And on loans of $100 billion (their market share), this still equates to a gross marginal profit of $1.5 billion per annum. Meaning they make another $500 million out of fees go figure.
Time for Kiwibank & TSB to squeeze this margin more I reckon, as banks seem to be the only ones making profit during these times.
His beneficiary tenants have a steady income. He buys below "true market value" because he invests areas such as Aranui and Linwood. He doesn't need to worry about broken glass bottles strewn around the properties because Methylated Spirits come in plastic bottles.
Kezza, not taking the piss at all!
Why wouldn’t we be in, when we would be making $200 per week on most houses purchased now?
Investing is all about purchasing well and making the most of opportunities.
We have got no worries about purchasing now and people need housing!
If you aren’t buying well now, you never will ownN
What is the ANZ trying to do?
On the one hand they are predicting massive price drops for residential property, but on the other hand they trying to encourage people to borrow.
Who would be crazy enough to borrow to buy a house only to see a 15% drop in value in the near future wiping out any equity?
Either the ANZ feels confident about the market, or it wants to oversee a massive sell down through countless mortgagee sales.
Choose one.
Banks like ANZ are trying to hold off negative equity. They're not really trying to attract new borrowers to take on mortgages. They're trying to keep property prices from dropping too much and taking the pressure off existing borrowers so they can keep paying. Otherwise they'll be inundated with mortgagees which is very bad news for everyone.
Little room let for lower rates, and Im not sure how the free TVs worked. Banks pulled the trigger in 87 and it was a blood bath for the stupidly in debt. They didn't in the GFC provided and we only had a mild retrenchment. Thus Banks avoided the reset that was due and happened elsewhere (Ireland, US etc). On that basis I suggest NZ is more than due the ugly reset. Debt to average income multiplies clearly shows that.
First mover to clear bad loans is generally better off. Batten the hatches. They can just offer them all to TM2. Which bank will pull the trigger first...?
What they did post 08 was actually loosen criteria, extend terms from 25 to 30 years, increase income multiples and encourage more Interest only debt. Debt that is not repaid is money that never gets destroyed. We’ll have half the country renting from the banks n IO terms within the next 24 months.
I realise you have property in ChCh so have reason to talk up the market but, really?
Clearly you are choosing to ignore the Corelogic report from last week, reported here, that put Christchurch as the second riskiest of the main centres behind Queenstown. Or the REINZ HPI last week that showed Christchurch prices having the second lowest annual rise in the country behind Franklin (which would have been affected by the dip in Auckland prices last year). Laughingly (or sickeningly depending on your position) I've seen RE agents talking up Christchurch based on that low growth on the absurd notion that it must be Christchurch's turn next! The reality, of course, is that the fundamentals in Chch have been poor for a while now, hence the low rise, and are soon to become much worse.
Following the earthquakes there was a drop in population over the next couple of years, followed by a rebound. The difference being that those raising the population were primarily involved in the rebuild, engineers, construction, labourers etc. Plenty of work. That work is drying up now. There is an oversupply of houses (see the stalled subdivisions) and the infrastructure rebuild is nearing completion. The traffic cones have mostly disappeared, the Northern and Southern motorways and convention centre are all nearing completion, followed by the sports centre. Where are all these workers going to get jobs. They can't all work on the stadium (if that goes ahead in the current climate). I know of construction workers that have seen the writing on the wall and have already gone. They will be the first in a mass exodus. Take a drive round the new subdivisions and look at the utes in every other driveway. How will they all maintain their mortgage payments?
Long Pockets, CoreLogic is not accurate at all in regards to ChCh market being vulnerable.
ChCh market has been Pretty flat for a few years I agree, and that is what makes ChCh the most stable market in NZ.
The opportunity for investors and owner occupiers to buy over the last few years has been amazing.
Yes there will be people that lose jobs due to the excessive unnecessary lockdown in NZ.
Disagree that subdivisions have stalled, there are heaps of sections Being sold and properties being built, and that is why our market is a true market.
Don’t intend to argue about ChCh prices dropping or not as it is pointless just like the economists predicting percentage drops, as they always tend to be always wrong!!
What I do know is that property investing has enabled professional investors to become financially independent due to realistic prices and great rental returns!
Will,that change in the future? NO!!
I am surprised that you have not learnt more about the fundamentals of money creation and the credit impulse - (appetite for increasing the level of debt in layman’s terms). Particularly given how much time you spend on this site. House prices rose in NZ since 2010 because our household debt rose from 140 billion to 280 billion - a doubling of debt achieved by ever lower rates and increasing the amount of debt by encouraging more interest only investors/fools into the belief that prices always go up. It was a great time... but it is over and will painful for those that mistook leverage for genius.
I work in the defence industry and my partners a Veterinarian, shes just been offered a huge sign on bonus to work across the city at another clinic because guess what? We can't import our key workers anymore.
Doctors, Teachers, Nurses, Police, Engineers, Food producers...The jobs that benefit society and quite often get overlooked in boom times are the ones who are going to thrive in this economy. And they deserve it, much more than a real estate agent flicking houses off to foreign buyers.
I’m happy.
My wife is a school teacher on a permanent contract with plenty more pay rises coming down the pipeline in the next few years.
While I am the manager of a large family farming enterprise with pretty much no debt and good diversity of income.
We are also first home owners with a DTI of approximately 4x, LVR of about 75% and some other assets and investments that can be put into paying down the mortgage further if need be.
In my area most peoples employment is related to primary industries and essential services so there is not too much worry about job losses so I can’t see house values changing a lot, though I can certainly see how other towns will be more concerned with having a higher percentage of employment coming from the likes of tourism and manufacturing.
Never in NZ's history has it been a better time to NOT be a borrower IN ANY WAY.
I thought I would be basically stress free once I got to <20% LVR earlier this year, now I find myself spending my spare time mulling over increasingly unlikely ways I could raise the remaining capital to be completely mortgage free in the extremely unlikely, but very recently introduced possibility that the entire world goes to sh.
So, you're in a $1m house in Auckland with a $200k mortgage. At 2.79% that is $5,600 per annum interest. I think the dole is around $12k per annum and that house rents for at least $30k per annum. Your anxiety seems irrational. Do you have a partner? (another $12k), get a flat mate.
These latest rates cuts are nearly the last of the fuel that can be added to the fire before things start to get cold around here.
Now who will make the most of these record low rates to pay down as much debt as they can, while they can?
And who will find themselves suckered into a debt honey trap?
this is signaling 'tight money'.
https://pbs.twimg.com/media/EYcf7G4X0AEn8L2?format=jpg&name=small
Rolls Royce to lay off over 9000 people
This rate is still too high compared to ANZ aust. Similar QE and at the same rate from RBA. The rate offered by ANZ Aust is 2.19% fixed for 1, 2 or 3 years. The Reserve Bank is warning banks not passing full effect of its cuts to borrowers. I am expecting even lower rates. Do not fix now until we get to low 2%s, may even go lower. If you are owner occupier or long term residential property investor doesn't really matter what your house is worth on paper. A savvy landlord should be able to hold property with zero income without too much stress. In the current market that should be your test before investing in property.
Tell me this is not happening.... all of the comments said that airbnb would not be used. So I've been banking on buying up cheap bnb homes where the vendor is strapped for cash and under pressure from de bank.
Covid-19 coronavirus: Airbnb New Zealand bookings leap, heading towards pre-virus levels
Covid-19 coronavirus: Airbnb New Zealand bookings leap, heading towards pre-virus levels
https://nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=123334…
Lol what am I worried about HW? Many small businesses are bouncing back to ABOVE pre-lockdown levels because there is some pent up demand from people being cooped up for two months. Clearly that is not an indication that aggregate demand has magically grown. It's a temporary post-lockdown phenomenon. The joke is that you took a temporary phenomenon and extrapolated it to forever, like you have with house price appreciation.
As for thin air pronouncements, here ya go: https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index
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