The retail banks quickly followed the Reserve Bank's 50 basis points cut to the Official Cash Rate (OCR).
Westpac, ASB, BNZ, Kiwibank, SBS Bank, TSB Bank, ANZ and National Bank have all dropped, or will cut, their floating mortgage rates. See all bank mortgage rates here.
ANZ has cut its floating mortgage rate by 46 basis points, less than the 50 basis points OCR cut, to 5.74%. Sister bank National is cutting its floating rate by the full 50 basis points, although the cut also takes its rate to 5.74%. The National Bank changes come into effect from Monday March 14 for new customers and March 29 for existing customers. ANZ's from Saturday March 12 for new floating, or variable, rate customers and March 28 for existing ones.
ANZ and National are both also cutting their Flexiplus revolving credit facility rates by 55 basis points to 5.65%, ANZ from March 28 and National from March 29.
TSB Bank has cut its variable mortgage rate by 50 basis points to 5.79%.
Read Westpac's statement below:
Westpac has reduced floating mortgage rates for Retail and Business customers by 0.50% in line with this morning’s Reserve Bank decision to cut the Official Cash Rate (OCR).
The move will now see the Everyday floating rate at 5.60% and the floating rate at 6.24%. The rates are effective from tomorrow (Friday March 11th) for new customers and from Thursday 31 March for existing customers.
This follows reductions in our fixed mortgage rates last week, giving customers both floating & fixed options below 6%.
Westpac’s General Manager Retail Bank, Gai McGrath, said customers should speak with their local Bank manager about home loan options to ensure they have the right financial products for their individual circumstances.
Read ASB's statement below:
ASB has today announced decreases to its variable lending and on call savings account interest rates.
Catherine McGrath, Chief Executive Customers, Markets and Products says the decision to reduce the variable lending rate to 5.75 percent per annum was made following this morning’s decrease in the Official Cash Rate (OCR), which also takes into consideration the broader effects of the Christchurch earthquake. The new variable interest rate for home loans will be effective as from 11 March for new borrowers and from 4 April 2011 for existing borrowers.
“The terrible tragedy in Christchurch will have far reaching consequences, not only for our customers in that region, but for the whole community and the wider economy,” she says.
“While the OCR is just one factor that we consider when setting our interest rates, we hope that by dropping our variable lending rates now we can assist the Reserve Bank to alleviate the new financial pressures now confronting so many New Zealanders.”
Last week ASB lowered its fixed home lending rates and also its term deposit and term fund interest rates to reflect changes in wholesale funding rates.
Variable interest rates for overdrafts, business lending, rural lending and credit cards will also change. See all ASB's changes here.
Read Kiwibank's statement below:
Kiwibank has responded to this morning’s cut in the Official Cash Rate by cutting its floating interest rates by 0.50 percent to 5.65 per cent p.a. The cut is immediate for new customers and effective in two weeks for existing customers.
Kiwibank Chief Executive Paul Brock said there had been strong signals that the cut would be made and Kiwibank had made preparations to react immediately.
“This is an excellent opportunity for Kiwibank to lead the charge to provide real savings for home loan customers,” Mr Brock said.
“The OCR is down 50 points so we are matching it without any delay.”
Kiwibank cut its fixed rates last week in anticipation of the change in the cash rate.
Read BNZ's statement below:
The Bank of New Zealand has reduced its variable housing rates by 50 bps and its 6 month fixed rate by 45 bps.
Tim Main, Treasurer at BNZ says;
“Since the global financial crisis, the average cost of bank funding, particularly deposits and term wholesale funding, has been continually increasing. Regulatory changes are requiring all banks to hold more expensive, but more stable forms of funding. BNZ will need to take account of these costs when adjusting lending rates in the future.
“For now however, rebuilding Christchurch and supporting confidence more broadly in the economy is extremely important, and BNZ has no hesitation in passing on today’s rate cut by the Reserve Bank.”
Variable rates are effective 11 March for new customer and 25 March for existing customers. See all BNZ's changes here.
Read SBS Bank's statement below:
Customer-owned SBS Bank has responded swiftly to today’s cut in the Official Cash Rate (OCR) by announcing a competitive 50 basis point drop to its floating home loan rates. The drop brings SBS Bank’s floating mortgage rate to just 5.65 percent – the lowest on record since 1965.
SBS Bank general manager finance Tim Loan said the cut was anticipated following the devastation in Christchurch and as a New Zealand-owned bank, SBS had an unwavering commitment to supporting its customers and its communities.
“We always look to provide our customers with direct benefits and know today’s announcement will provide another form of relief to many who have been negatively impacted by the Christchurch earthquake.
“We cannot anticipate how long-term New Zealand will be fending off the economic impact of the earthquake, but the immediate priority for SBS Bank is to provide our customers with every bit of support during this time. “By passing on the full reduction of today’s OCR announcement, we can help provide valuable savings for our home loan customers,” Mr Loan said.
(Updates add ANZ, National Bank, SBS and TSB moves).