ANZ NZ is increasing both its "standard" and "special" one-year, 18-month, two-year and three-year home loan interest rates.
The increases range from four to 15 basis points, and are effective from Thursday (today), September 16.
With its one-year special rate rising five basis points to 2.60%, ANZ's now above the 2.55% offered by ASB, BNZ and Westpac NZ. And most smaller banks are lower than that.
ANZ's new 18-month special, at 2.85%, takes it above ASB and BNZ's 2.79%. And its four basis points increase to 2.99% with the two-year rate, takes ANZ four basis points above ASB, BNZ and Westpac with several other banks lower still.
In terms of the three year rate it's more of a mixed picture, with some banks below ANZ's new 3.40% special, and some above.
Separately, Kiwibank also hiked mortgage rates earlier in the week.
See all banks' carded, or advertised, home loan rates here. The tables below outline ANZ's changes, with details of what's required to get a special rate below.
15 Comments
Yes, it's fascinating. Courtesy of the elimination strategy, we are a "closed circuit" economy effectively ring fenced from the normal drivers of the global cycle.
The most obvious thing is that the local economy is running at maximum capacity, due to supply constraints and the lack of our usual immigration cheap labour buffer. Consumer behaviour now shrugs off lockdowns, we can't spend money overseas so splurge here, and any cash flow gaps for individuals and businesses are plugged by the government.
This is a recipe for sustained inflation above 3% and the RBNZ know it.
The demand for new home loans just has to come down. There is an ever increasing gulf between those that can afford a house and those that cannot. There must be now a big gap that has been created in a very short time, its just math. If you didn't buy a house in the last 12 months because you couldn't afford it, effectively you have now been priced out of the market by at least 5 years. Its time for banks to start making more money out of those that could afford the mortgage to cover the loss. Banks are not interested in those still stuck in the gap and remember every business expects to make more profit each year than they did the last.
Maybe the banks are spooked. Praying the CCP will paper over this company's $300 billion, that it is unable to make payments on.
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