She said ANZ was continuing to review home loan rates in response to international and local market conditions, adding “we’ll always endeavour to provide the best rates for our customers”.
“Since we started cutting rates in March last year, our one-year home loan special rate has fallen by 2.90%.”
ANZ has also cut its six-month fixed rate to 4.89% and its two-year fixed rate to 4.65%. Advertised rates for borrowers with less than 20% equity are 5.09% for a fixed one-year term, 5.49% for a fixed six-month term and 5.25% for a fixed two-year term.
ANZ has announced a new one-year fixed rate of 4.49%, a drop of 26 basis points. It comes after BNZ yesterday dropped its one-year fixed rate to the same point. Photo / 123rf
BNZ’s advertised rates for borrowers with more than 20% equity are 4.99% for its fixed six-month term, 4.49% for its fixed one-year term and 4.75% for its two-year term.
Karna Luke, BNZ’s executive for customer products and services, yesterday said the bank was continuing to compete hard for new home loan customers by offering attractive rates.
“This 26bps cut provides meaningful savings for both new and existing customers.
“For someone moving from our current average one-year rate of 5.19% per annum, with a $500,000 mortgage over a 25-year term, this new rate could save over $2400 across the 12-month fixed period.
“At 4.49%, this is a nearly 40% drop from the February 2024 peak of 7.35% for the one-year fixed term – providing real relief for households.”
Luke said BNZ was experiencing strong customer demand for its one-year fixed home loan rate.
The Reserve Bank (RBNZ) will make its next Official Cash Rate (OCR) decision on October 8.
The OCR sits at 3%, having fallen by 250bps since August last year, when it was 5.25%.
The RBNZ shifted its outlook at its last meeting to recognise that the economic recovery has stalled. Two more rate cuts are now expected by March next year.
Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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