ANZ New Zealand has raised its retail interest rates across the board.
This comes after it, along with almost all other banks, ignored the Reserve Bank's +50 basis points Official Cash Rate (OCR) hike in February.
But another +50 bps Reserve Bank (RBNZ) OCR rise on April 9 has tipped the scales.
These latest rises by ANZ include:
- a +40 bps rise to its floating rate to 8.39%, effective for existing borrowers from Thursday, April 27.
- about a +20 bps rise to fixed mortgage rates for terms of two years and less. (The key two year carded rate will rise by +14 bps to 6.59% on a 'special' basis).
- term deposit rates will rise between +10 bps and +25 bps for all terms to 18 months.
- ANZ's Serious Saver rate will rise by +50 bps to 4.25% including a +25 bps rise in the base rate and a +25 bps rise in the bonus rate.
After these changes ...
ANZ's 8.39% floating rate is the highest floating rate of any bank. The lowest floating rate is 6.99% from Heartland Bank.
ANZ's one year fixed rate becomes 6.74%. The lowest one year fixed rate is from Heartland Bank at 6.14%. ANZ's two year carded fixed rate is now 6.59%. That compares with the lowest bank two year fixed rate of 5.99% also at Heartland Bank.
ANZ's new 4.25% Serious Saver potential rate compares with the The Co-operative Bank's existing 4.50% Step Saver rate.
ANZ's new six month term deposit rate offer of 5.20% compares with 5.50% currently offered by Heartland Bank, Kookmin Bank and China Construction Bank for the same term. But is is higher than the rates offered by all its main rivals.
ANZ's new one year term deposit rate offer of 5.70% compares with Rabobank's 6.00% one year offer, and Heartland Bank's equivalent 6.00% offer. But is is higher than the one year rates offered by all its main rivals.
42 Comments
It's like they were just waiting for Tony's statement... 'As each week goes by, more and more people are going to realise and accept that fixed mortgage rates in New Zealand actually reached their peaks almost three months ago. And more and more people will realise that despite the official cash rate increasing by 1 percentage point since February, bank floating mortgage rates have not gone up at all..
NZHL might want to take down this video of Tony that was loaded today...https://youtu.be/mZag4TkxodU
"I'm 99.9% sure rates are at their peak now"...LOL
I'm of mixed thoughts on ANZ's move to hike.
Most of that comes from what's happening globally between USA, China and Russia with the EU (France) wanting the EU to stay out of any conflict between the west and China. I think that capatilsim as we know it is about to change if the global order changes
I assume Rubb3rduck3y was also receiving 0.8% on term deposits while saving for a house deposit. Anyway, term deposits needed to be 0.8% so that a generation of home owners who bought at 2 - 3 x their annual income could convert their surplus properties into term deposits at 10 - 12x the annual income. Now that's been done, they can start enjoying a decent return on capital they did not actually earn.
100%. We're 16 months into a new mortgage on a 30 year term, so now's the time to be doing it. Much like with our first home, I get a year or so's expenses data behind us and then ramp up the payments.
Would comfortably get this down to a 20 year mortgage just by cutting out all the other crap I spend money on 😂, let alone the wife.
You have to wonder about some of those people who bought multiple properties during lockdown or have 20-30 properties. I just can't imagine they have piles of spare cash laying about to pay the higher mortgage rates, higher insurance, tax etc. After all their whole ethos was to use equity to purchase more properties and that equity is drying up while expenses shoot up.
Our broker asked us if we were aware how much equity we had in our 1st place, suggested we could leverage into a rental property. He was a little surprised when I said yes and no thanks. I guess he's used to the lottery win excitement he usually gets from clients when he drops that little gem on them.
The bank now values our property 20% less than what we paid. However, we still have approx 25% equity because I didn't leverage up.
How long before the other majors follow?
ANZ knows that people don't change banks often, or at all, in a lifetime.
And the other majors certainly don't want to lose out on gouging their captive clients when they know that operating as an oligopoly is how to make off like bandits.
False hope is still apparent, RBNZ will continue their hikes for another two quarters at least. Wondering if the next hike will be another shock higher than anticipated to try and again reiterate who is in charge to the banks. Floating above 8%, just waiting until fixed get to 8% and the investors start selling in droves after hanging on too long. It's hard to weather a storm when the walls fall down around you and the floor out from under you.
Plenty of people still needing to refix across the year and will get smashed by the implemented , and further hikes. Banks playing fast and loose with RBNZ as they feel things will improve sooner than later. We all know the recession is yet to hit, I'm thinking banking losses may be larger than they thought come 12 months time
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