Sliding wholesale rates have opened the gate for New Zealand's largest home loan lender to drop its key one year fixed rate in a 'special' offer. Standard rates rise however

ANZ has changed its website to reflect two home loan rate changes. (Unusually, we have not received any direct notice from the bank yet.)

Their carded fixed two year rate has moved up to 4.79%, a +4 bps rise that puts it in line with all its main rivals.

But it has gone against the grain with its change to its one year 'special'.

This has been reduced by -6 bps to 4.39% and that rate beats all its main rivals - in fact, it beats all banks except for the HSBC Premier offer.

At the same time, ANZ has raised its standard rates for both terms. The one year standard rate has been pushed +14 bps higher to 4.89%. Their two year standard rate is +4 bps higher to 5.29%. Both these standard rates are now +50 bps above their 'special' rates.

ANZ 'special' rates come with the conditions of a minimum 20% equity in the property transaction, and require an ANZ transaction account with salary direct credited, plus ANZ require you to take at least one other product, such as their white-labeled Vero insurance policy, as an example. Their 'special' rates are not available with package discounts. Otherwise, their standard rate applies.

The change today, especially for the one year rate, has been helped by soft, even falling, wholesale swap rates. Over the past three weeks, one year swap rates have fallen by -5 bps (from 2.15% to 2.10%). Two year swp rates have also fallen by -5% (from 2.40% to 2.35%).

ANZ last changed rates on January 19, 2017. At that time they also increased term deposit rates, although today no equivalent term deposit rate change has been announced.

Today's changes alter who has the leading carded rates for mortgage borrowers. HSBC Premier has the market leading position for all terms at this time. Other than HSBC Premier, ANZ now has the lowest rate for one year, the Co-operative Bank has the next lowest 18 month rate, and TSB Bank has the next lowest rates for all terms 2 to 5 years.

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

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.39 5.05 4.79 5.49 5.70 5.85
ASB 4.59 4.75 4.79 5.09 5.49 5.69
4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.45   4.79 5.25 5.65 5.85
Westpac 4.59 5.05 4.79 5.09 5.69 5.49
             
4.55 4.70 4.85 5.25 5.55 5.75
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.45 4.75 4.75 5.09 5.45 5.69
4.45 4.75 4.65 4.99 5.40 5.45

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

TSB Bank has a ten year fixed rate of 5.75%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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27 Comments

"... transaction account with salary direct credited..."
Who says DTI isn't going to be used? It already is, and has been for quite some time....
What covertly comes next ( if it hasn't already) is loan duration assessment. How old are you and can you pay the loan off by the time you are 65?

Er, don't you think banks already consider your age? You say it like it's a covert thing... but honestly I would be surprised if a bank would give a 30 year loan to a 50 year old.

they have given many 30yr mortgages to me in the last 7 years since I reached 50

That doesn't sound risky at all

No-one pays off mortgages these days, they are just used to keep you afloat while you wait for your capital gains ship to come in.

I agree.
But some people forget the1929 debacle.
Or 1987.
The only way house prices are going to further increase in this country is by increased immigration.
And then we lose our soul and the essence of being a kiwi in your own land.

What's your definition of a "kiwi" and why can't an immigrant be one?

Unless you are Maori then you are either an immigrant or descended from one so it would appear that immigration is not a barrier to being a kiwi (unless you are saying only Maori are kiwis?).

Kiwi is not a prescriptive definition
To be a kiwi is to fit in and be part of the existing culture
Difficult to define what it is
Easier to define what it isn't

and it's not these examples of what is happening

The changing face of kiwi values

Covered up head-to-toe with eye-slits
Two wives
5 Children - some kiwi born
Watches TV with a wife either side
smashes first wife with a hammer
NZ magistrate allows bail
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11787603

This is not kiwi culture - the manifestation of growing resentment
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11799232

Wife of jailed jihadist rejects domestic laws - only answers to a higher authority
Happy to take the benefits of residency and citizenship but not conform
http://www.smh.com.au/nsw/moutia-elzahed-to-be-charged-for-refusing-to-s...

Is this "Kiwi culture"?...

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11607959

If you are saying Kiwi culture is defined as following NZ laws (e.g. not assaulting your partner) then that is being achieved by the majority of "kiwis" be they a NZ born citizen or an immigrant.

You also appear to be supporting the disgusting behaviour of the drunken idiot in Huntley that abused a Muslim kiwi. That is not very "kiwi" of you in my opinion. That clown has been arrested, so if a "kiwi" is someone who follows NZ laws she is about to lose her "kiwi" status.

A kiwi is someone who has citizenship of NZ. Immigrants become them all the time. Every time an immigrant comes here, they change the place to be more like where they came from. If they are being used by the government to prop up a failing housing market, they by definition, make it harder for the existing citizens to live in their own house as they out number the amount of houses built. This is a negative for the current citizens as a whole. Each country has the impetus to do the right thing for their citizens. Immigration should be only for specific occasions where the immigrants will specifically benefit the current population, not a right.

Maori of course were originally immigrants like the rest of us. "Kiwi" is a great culture and something to be proud of. It helps to have been here a while but there are great examples of people born overseas who have successfully worked at it and became Kiwi. And good on them.

Immigration requires the presence of an indigenous population; the Maori were the first "colonists" of New Zealand as there were no native inhabitants of NZ on their arrival.

hello???? you sure about that BigG

Yep, try reading Michael King's book "Moriori: A People Rediscovered" (2000, Viking).

What is your point in all this? If it is that white New Zealanders cannot be for limiting immigration as they or their ancestors once were immigrants I 100% disagree.

Don't know where you got that "point" from?

My point is "kiwi" culture is predominantly based on immigrants so it is hypocritical to oppose immigration on the basis it will dilute the status quo. The status quo position takes the position immigrants are bad people and is based on bigotry. If you want a discussion on limits on immigration due to lack of infrastructure or jobs etc then that is fine. But simply saying we don't like immigrants because they will make our society bad as they bad people is just being a bigoted racist.

I am planning to live to 100

This requirement has nothing to do with DTI. It's basically the bank's way of trying to increase the stickiness of their customer base. If you have your salary paid into the same bank you use to finance your home, you're statistically less likely to leave that bank. Same goes for additional products, like credit cards and insurance.

I don't disagree that DTI is and has been used in some form - it's a key part of credit assessment after all - but it has nothing to do with salary credit.

Banks in my experience will not discriminate on age for any kind of lending, provided that it is an affordable deal. They will (or should) make an effort to understand what your future plans are, and how the loan will continue to be affordable if you have big changes in the future (such as retirement).

"Bankwest (ASB Group) is set to rock the $1 trillion mortgage market and more than 1.5 million property investors by axing negative gearing benefits that drive lucrative residential property investment...."
http://www.afr.com/real-estate/cba-unit-bankwest-set-to-axe-negative-gea...

Which will see them lose even more market share to ANZ. Talk about cutting off your nose to spite your face.

I think you mean CBA Group

Of course this could just be a client retention strategy

A good strategy to clear the decks of the stupidley in debt specuvestor group. What does this bank k ow that we dont...?

Good rate and worth the risk as unlikely interest rates are going up anytime soon.

Sorry... you're saying it's worth the risk of locking in because interest rates arent going up? #confused

You did see their 2 year rate went up, right ?

This is the best rate at the moment. However some people may be worried about fixing for 1 year as when they float again in a years’ time rates will be at 9%. IMO rates will be the same in a years’ time as I cannot see any reason to justify a rate increase in a years’ time (e.g. OCR not expected to move until 2019).

Hence my opinion is to lock in the best rate for 1 year (4.39%) as I don't see rates going up anytime soon. Alternatively you could float on 5.69% but that seems dumb to me. For the last 10 years 1 and 2 year rates have been the best rates offered but some people take longer term higher rates because the fear coming off a 1 or 2 year into a higher rate. Those people have obviously paid more than they could have.