ANZ cuts floating & fixed home loan rates, business base rates, and some term deposit rates. But raises one term deposit rate by 50 basis points

ANZ has now cut home loan rates, in the general trend lower.

But uniquely (so far) it has also cut its floating mortgage rate.

ANZ's floating home loan rate will fall -15 basis points (bps) to 8.49% effective Thursday August 1, for new loans, but not until August 15 for existing borrowers.

its revolving credit  "flexible home loan" rate also falls -15 bps to 8.60%, but not until August 15 for both new and existing clients.

Clients on ANZ's "Business flexible facility" will also get the -15 bps reduction to 8.49%, also not until August 15. There are other business base rate reductions, all -15 bps. But these are not until August 20. We will have more on these separately.

And ANZ has trimmed most home loan fixed rates, but not its one year rate which stays at 6.85%.

However ANZ took -6 bps off the 6 month rate to 6.99%, -20 bps off the 18 month fixed rate to 6.49%, -15 bps off the two year rate to 6.34% and -36 bps off the three year fixed rate to 5.99%.

That makes most of the bank's fixed rates "market leading". See table below.

At the same time, Serious Saver rates are falling (effective immediately).

And it has cut term deposit rates by -30 bps for terms 18 months and longer. But the one year TD rate only falls -10 bps to 5.60%. However, the one short rate they changed, the 5 month (150 day) rate is getting a +50 bps boost to 5.00%. Also effective immediately.

ANZ said these reductions are essentially due to falling wholesale rates following market interpretations of what the RBNZ will say and do at their August 14 Monetary Policy Statement review.

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials. And don't forget, banks have savvy tools at hand to 'know' the likely valuation of your property, so if the LVR is near 80% you may not find them very accommodating for a lower rate. With falling house prices, the point where low equity premiums start applying is shifting around as well. See this.

And the carded rates we report here can be different to the rates banks might offer in their banking app. We would like readers to reveal what their banking app shows as the potential offer rates. Please add that market intelligence in the comment section below.

A quick check of the wholesale swap rate chart below gives a clear understanding of where funding costs are heading.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. Term deposit rates can be assessed using this calculator.

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. Updated with Kiwibank changes effective Monday.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at August 1, 2024	%	%	%	%	%	%	%
ANZ	6.99 -0.06	6.85	6.49 -0.20	6.34 -0.15	5.99 -0.36	6.84 -0.30	6.84 -0.30
	6.99	6.85	6.69	6.49	6.35	6.29	5.99
	7.05	6.85	6.65	6.49	6.39	6.39	6.39
	7.05	6.85		6.49	6.39	6.39	6.39
	7.05	6.85	6.65	6.49	6.29	6.19	5.99
Bank of China	7.05	6.85	6.75	6.49	6.29	6.29	6.29
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.05	6.79	6.69	6.49	6.35	6.35	6.35
Heartland Bank		6.69	6.49	6.35	6.15
ICBC	7.19	7.05	6.79	6.69	6.59	6.49	6.49
	7.24	7.14	6.89	6.49	6.35	6.19	6.19
	6.99	6.85	6.89	6.49	6.39	6.39	6.39