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ANZ removes mortgage specials, raises fixed home loan rates across the board higher than wholesale rate increases

Posted in Property Updated

(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This morning, and effective immediately, ANZ has raised its fixed mortgage rates and withdrawn its 'specials'.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The 'one year fixed special' of 4.95% 4.85% introduced on November 22 has been withdrawn.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%
ASB 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%
Westpac 4.95% 5.75% 5.59% 5.99% 7.10%
           
Co-op Bank 4.99%   5.59% 5.99%  
HSBC 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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23 Comments

This is planned to catch all

This is planned to catch all their laid back existing client base. Move the rates up quickly for existing clients and offer the specials to those that ask for it. A majority of people would just accept the rate increases. Fast on the upside and snail pace slow on the downside, engineering their excessive and record profits.
Where is the commerce commission?

Zany, I think for property

Zany, I think for property investors this is good. 
Bank deposit yields are continuing to rise. So too will property yields.
 

The yield curve continues to

The yield curve continues to steepen.
This is a positive sign for New Zealand's economy.

Always until the mythical OCR

Always until the mythical OCR hikes materialise.

Your Landlord you are

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.

No dreaming gordon. Wide

No dreaming gordon. Wide awake.
I am an investor and as such am hedged against rising interest rates.
Agree with you when you say that interest rates "will almost certainly go up quickly when the inflation figures come through."

I wouldn't hold your breath

I wouldn't hold your breath for any serious inflation.  

Your Landlord you are

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, I was pretty

Your Landlord, I was pretty skeptical about your comment initially but the boss just gave me a $50k pay rise.  Must be a recognised shortage of top people out there. I still think that compulsory superannuation as opposed to interest rate rises is the way to go while the rest of the world is in difficult conditions we should try and regain New Zealanders wealth rather than decimate with higher interest rates.

Sorry Zany but I could never

Sorry Zany but I could never give my money to someone else to invest. They will not take the care with it that I do.
I have not yet met a money manager working for a boss who knows more about managing my money than me. Of that I am sure.

Do tell all. Then we can be

Do tell all. Then we can be as good as you.

MikeM, easy answer, buy an

MikeM, easy answer, buy an investment property and build up a portfolio making sure you maximise the rents along the way. Maximise as in add rooms, subdivide, do up and get the rents up.

Would never think I am good

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.
 

Your Landlord, the returns on

Your Landlord, the returns on compulsory superannuation where there is also a company contribution component is very high because the administration costs is subsidised by the government and also by the company contribution. Therefore your contribution and earnings is free and intact from the costs of the administration. Kiwisaver at the current 3% company contribution makes the scheme worthwhile to invest.
For most people they cannot save. Therefore a compulsory super will enforce savings and increase wealth. Higher interest rates just strip the wealth of the average New Zealander that has a mortgage over their homes. With the free money printing going on around the world, money is a worthless form of wealth. Increasing interest rates when Central banks are printing money is crazy.

Zany I respect your views

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.

Your Landlord, there are a

Your Landlord, there are a lot more people in debt than there are not, otherwise the RBNZ would not threaten interest rate increases to dampen consumption. People with savings should opt for a managed fund. Savings in the bank is a declining asset as money does not hold value due to Central Banks freely printing money.
Personally, I have already increased my rents to cover interest rates are 10%  so the longer that interest rates stay down that translates to further debt reduction. The development that I do increases the rental yield because the cost of land is zero.
My pay increament of $50k per annum will not go towards general consumption. It will go to debt reduction as well.

Good on you. You seem very

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.

Maybe ANZ are starting to

Maybe ANZ are starting to raise interest rates in order to pay for the upcoming settlement on all the dodgy swaps they sold to farmers!

Maybe ANZ have achieved their

Maybe ANZ have achieved their market share objective and are now trying to get some of their margin back that cost them to achieve it. Just like any business really.

Sir Roderick Deane (

Sir Roderick Deane ( Wikipedia ) within a superb speech mid-November, made some interesting comments on residential lending risks …
 
Sir Roderick Deane - Independent Economics
 
Papers
 
http://www.independenteconomics.com/assets/papers/GovernanceMythsReality.pdf
 
Hugh Pavletich

Unfortunately this is a sign

Unfortunately this is a sign of things to come - if you havent fixed already, move ya butts, or get it well and truely spanked in the New Year.

Watch our cartel banks in

Watch our cartel banks in operation as they engineer another year of record profits. Where is our Commerce Commission? sleeping as usual.

Indeed - On top of this our

Indeed - On top of this our idiot Finance Minister Big Billy Boy English is saying watching this space "Mortgage Interest rates will go up"  When did he becpme thr Reserve Bank Governor. He needs a big kick up the Mahuta