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New Zealand's largest home loan lender reduces all its fixed rates, setting upper limits for their rivals

New Zealand's largest home loan lender reduces all its fixed rates, setting upper limits for their rivals

ANZ is the latest bank to cut fixed mortgage rates.

The reductions are unremarkable; none are market leading. But because ANZ is has the largest market share in home loans they set the upper limit for all their rivals.

The fixed-term cuts cover every rate term and range from six basis points to 36 basis points. They are effective on Tuesday, September 15, 2015.

Here are the reductions by ANZ;

Six month fixed: 5.19%, down -20 bps;

One year fixed: 4.49%*, down -20 bps; 

18 months fixed: 5.09%, down -6 bps

Two year fixed: 4.65%*, down -24 bps;

Three year fixed: 5.25%, down -34 bps;

Four year fixed 5.39%, down -36 bps. And

Five year fixed: 5.49%, down -30 bps. 

Those with an asterisk beside them require a minimum of 20% equity in the property or a minimum deposit of 20%. Otherwise ANZ's standard rates apply which are 4.99%  for one year, and 5.15% for two years.

These reductions follow its earlier standard announcement of a -25 bps reduction in their floating rates.

The best you can say about these changes are that ANZ's rate disadvantage has been narrowed.

However, borrowers should always negotiate for lower than carded rates, especially if you have equity of 20% or greater. Talking to your bank's main rivals and knowing what they will offer is the best way to start negotiations with your bank.

See all banks advertised, or carded, residential mortgage rates here.

The new floating and fixed mortgage rates now compare as follows:

below 80% LVR Floating  1 yr  18mth  2 yrs   3 yrs   5 yrs 
    % % % % %
5.99 4.49 5.09 4.65 5.25 5.49
ASB 6.00 4.35 4.69 4.69 4.79 5.09
5.89 4.35   4.69 5.19 5.65
Kiwibank 5.90 4.49   4.59 4.85 5.35
Westpac 6.00 4.99 5.19 4.69 5.19 5.65
             
5.95 4.69 4.79 4.59 4.99 5.49
HSBC 6.35 4.49   4.49 4.49 5.29
5.89 4.69 4.69 4.69 4.99 5.59
5.99 4.55 4.69 4.49 4.79 5.50

Mortgage rates

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4 Comments

C'mon you bankers - give us a 3.95% 2 year fixed - you know you can, your margins are huge, you are making billions. Nothing stopping ya posting a sub 4% rate now! Who will be first to do it.

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my bank manager offered 4.3% last week to me, but advised to wait until next week. I will be pushing
for sub 4 !!

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More OCR cuts to come, another this year and another early next. Waiting for lower longer term fixed rates as well when it becomes clearer the long term outlook is not going to change for a while.

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Hopefully two more this year... 29 October and 10 December if Santa is nice:)

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