sign up log in
Want to go ad-free? Find out how, here.

Banks start to lower rates following the RBNZ review; wholesale rates fall most at the five year end but latest rate cut is for 1 year

Banks start to lower rates following the RBNZ review; wholesale rates fall most at the five year end but latest rate cut is for 1 year

The first mortgage rate change after the RBNZ OCR review this week came from ASB who matched a couple of their rivals at 5.99% for a five year fixed term.

Today ANZ has announced a market leading rate at the other end of the term spectrum.

This new offer is 5.45% for one year.

That is a reduction of -14 bps from 5.59%.

This rate is a 'special', available to customers with at least 20% equity, and ANZ transactional account with salary credited, and any ANZ credit card or insurance product.

ANZ says "discretions or package discounts will not apply to this rate".

Although it is the lowest rate across all terms offered by any 'major bank', it matches HSBC's Premier offer which has been in the market for some time. And because it is a 'major', other banks will likely respond soon - either by lowering their offer rates of matching ANZ in negotiations.

At the same time, ANZ has reduced its standard one year home loan rate to 5.95% by the same amount, -14 bps, from 6.09%. Standard rates do not have special conditions although low equity situations may attract fees or 'low equity premiums'.

Since the RBNZ January OCR review yesterday, wholesale swap rates have fallen. At the one year term they fell just -6 bps overnight, but are down -15 bps since the beginning of the year.

In contrast, wholesale money rates for four and five year terms are down more than -40 bps since the beginning of the year.

See all banks' carded, or advertised, home loan rates here.

The current non-rate incentive offers are here.

This is how mortgage rates from the banks will probably compare as at 9:00 am Monday, January 26, 2015:

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 4 yrs 5 yrs
             
5.45% 5.70% 5.55% 5.99% 6.49% 6.59%
ASB 5.59% 5.70% 5.55% 5.59% 5.99% 5.99%
5.69% 6.09% 5.75% 5.59% 6.49% 6.59%
Kiwibank 5.69%   5.55% 5.89% 6.39% 5.89%*
Westpac 6.09% 6.30% 5.79% 5.89% 6.79% 5.99%
             
Co-op Bank 5.59% 5.59% 5.59% 5.74% 5.99% 6.25%
HSBC 5.45%   5.65% 5.79% 6.49% 6.49%
SBS Bank 5.59% 5.74% 5.49% 5.69%   6.19%
5.70% 5.90% 5.39% 5.95% 6.40% 6.50%
          * = possibly on Monday

--------------------------------------------------------------

Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP mortgage broker can be contacted by following this link »
--------------------------------------------------------------

Fixed mortgage rates

Select chart tabs

unweighted
unweighted
unweighted
unweighted
unweighted
unweighted

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

5 Comments

Most banks will do deals around half a percent below these published rates so push very hard for a 5.49% 5 year rate and threaten to move to another bank if you have any difficulty. Use a broker if you want a really great deal. These banks are making massive margins and will publish record breaking profit announcements later this year. They also know that interest rates are going to go even lower so do not accept the published rates - screw your bank over like they have been screwing everyone for the last few years.

Up
0

I have from a reliable source a waikato farm purchaser has just secured a $4m loan from a major bank fixed for 5 years at 4%.  Now there is a target to aim for.

Up
0

Sorry Realtor, with the 5yr swap rate at 3.50ish% (and banks can't fund at that anyway), unless theres some other huge mitigating factor involved, it's not a reliable source by a mile.

Up
0

So whats the bottom-ish line for bank wholesale?

Up
0

Desperate times require action.  

Up
0