(Corrected to fix error on 'special' rate.)
This morning, and effective immediately, ANZ has raised its fixed mortgage rates and withdrawn its 'specials'.
The rises apply to both sub 80% loan-to-value ratio (LVR) loans, and those above 80%.
Only fixed rates are being increased. Floating rates remain unchanged.
The 'one year fixed special' of 4.95% 4.85% introduced on November 22 has been withdrawn.
| ANZ fixed rate changes | Standard (<80%) | Low equity ( >80%) | |||
| New | change | New | change | ||
| % | % | % | % | ||
| 6 mths | 5.25 | +0.30 | 5.75 | +0.30 | |
| 1 year | 5.49 | +0.64 | 5.99 | +0.30 | |
| 18 mths | 5.85 | +0.26 | 6.35 | +0.26 | |
| 2 years | 6.29 | +0.34 | 6.79 | +0.34 | |
| 3 years | 6.65 | +0.15 | 7.15 | +0.15 | |
| 4 years | 6.99 | +0.09 | 7.49 | +0.09 | |
| 5 years | 7.20 | +0.10 | 7.70 | +0.10 | |
These moves are fairly aggressive by New Zealand's largest home loan lender. They position ANZ as the most expensive in the market for almost all fixed terms.
Since ANZ's November 22 rate change, wholesale swap rates have moved up only 15 basis points in the one, two and three year space, and only 10 basis points for longer terms.
It is likely ANZ is just making a tactical move here to assess how others will react, and re-enter in early 2014 with high-publicity.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
4.95% | 5.65% | 5.59% | 5.99% | 6.99% |
| BNZ | 4.95% | 5.80% | 5.95% | 5.99% | 6.99% |
| Kiwibank | 5.25% | 5.65% | 6.40% | 6.90% | |
 |
4.95% | 5.75% | 5.59% | 5.99% | 7.10% |
| Co-op Bank | 4.99% | 5.59% | 5.99% | ||
 |
5.10% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 5.20% | 5.45% | 5.45% | 5.99% | 6.55% |
| TSB | 4.95% | 5.40% | 5.85% | 5.99% | 7.00% |
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16 Comments
Your Landlord you are dreaming. I can guarantee a lot of property owners who have bought property in recent times have not factored in the fact their interest rates on their home loans are going to 8 to 9%. People want it now and just look at what the rates are when they buy their dream home. It is easy to forget we are on all time low emergency interest rates which cannot last forever and will most certainly go up quickly when the inflation figures come through from the projected growth. Batten down the hatches and have some money set aside for those increases.
Your Landlord you are dreaming. I can guarantee a lot of property owners who have bought property in recent times have not factored in the fact their interest rates on their home loans are going to 8 to 9%. People want it now and just look at what the rates are when they buy their dream home. It is easy to forget we are on all time low emergency interest rates which cannot last forever and will most certainly go up quickly when the inflation figures come through from the projected growth. Batten down the hatches and have some money set aside for those increases.
Would never think I am good MikeM.
But what I do know is that I take more care of my money than someone else would take care of my money.
What's more ... I would sooner take responsibility for my own future than give that responsibility to someone else. And then bitch and moan when they cock it up.
So hence I look after my own money.
Zany I respect your views absolutely, but I just don't expect, or think someone (eg an employer or a tax payer) should subsidise my retirement savings by compulsory payments (to me or anyone else).
Enforced savings only takes money away from somewhere else where it was being saved. The net effect is no increase in savings, just savings in another way.
Higher interest rates add to the wealth of people with minimal debt.
I guess one of the key differences between us is you have property you want to develop. I have property I want to keep. Higher interest rates only increase my income over the long term so I don't fear higher interest rates, merely see them as part of the on-going economic cycle and a different way to increase my wealth.
All the best in your property endeavours.
Good on you. You seem very sensible and organised with your financial planning.
You certainly don't need compulsory superannuation :)
PS agree with you re the development on land you already own. Excellent activity. I do this too and it of course increases the yield from already-owned assets.
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