ANZ has today announced a new market-leading one year home loan rate.
The new rate is a 'special', for customers with at least 20% equity, salary direct credited to an ANZ transaction account, plus one of an ANZ credit card or Insurance.
The new 'special' rate is 5.75%.
It beats the SBS Bank rate of 5.85% for the same term, one that has no special conditions.
At the same time, ANZ is raising its standard one year mortgage rate to 6.15%, an increase of +10 bps.
And it is reducing its standard three year rate to 6.49%, down -16 bps from 6.65%.
However, that reduction does not make the ANZ three year rate particularly competitive as most of their rivals are offering 6.19% for that term. SBS Bank is still offering 5.95%.
Equivalent changes apply to ANZ's low equity interest rates for new lending, rates that are +50 bps above their main card.
The changes are effective Wednesday, September 3, 2014.
Unchanged is their two year 'special' at 5.99%.
ANZ recently ended its cash incentive offers which gave up to $3,000 for new lending. That incentive ended on August 31.
See all banks' carded, or advertised, home loan rates here.
The current cash incentive offers are here.
This is how the updated mortgage rates compare as at 5:00 pm Tuesday, September 2, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.75% | 6.25% | 5.99% | 6.49% | 7.15% |
 |
6.09% | 6.30% | 5.99% | 6.19% | 6.99% |
 |
5.99% | 6.25% | 5.99% | 6.19% | 6.99% |
| Kiwibank | 5.99% | 5.89% | 6.65% | 6.95% | |
 |
6.09% | 6.30% | 5.99% | 6.19% | 6.99% |
| Co-op Bank | 5.95% | 5.89% | 5.99% | 6.19% | 6.89% |
 |
5.95% | 5.95% | 6.55% | 6.99% | |
 |
5.85% | 5.99% | 5.99% | 5.95% | 6.79% |
 |
6.00% | 6.05% | 5.79% | 6.60% | 7.00% |
--------------------------------------------------------------
Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
--------------------------------------------------------------
Fixed mortgage rates
Select chart tabs
21 Comments
Are the shareholders of the big Aussie banks paying any attention here? I hope heads roll when their stupidly aggressive home loan market share strategy comes home to roost. We have seen this story before in the us and uk with a blind pursuit of market share leading to lunacy in loan advances and an eventual government bailout.
With NZ house prices now recognised as in the top 3 most stupidly ludicrious markets (alongside Hong Kong and Canada) if i was a bank director and didnt want to be accused of negligence down track, i would be seeking to rein in lending urgently.
Who cares about the current margin, worry about the loan losses when house prices collapse. China is currently imploding (you see this through both house prices there and also domestic demand collapsing which isnflowing through to our commodity prices) which will have a big knock on impact on our house prices and gdp.
Compare the difference:
NZ ANZ 1 year fixed 5.75%
AU ANZ 1 year fixed 4.94%
NZ Westpac 1 year fixed 6.09%
AU Westpac 1 year fixed 4.99%
NZ HSBC 1 year fixed 5.95%
AU HSBC 1 year fixed 4.49%
link:
That NZ borrowers are being charged the highest interest rates in the developed world.
That Australian owned banks are running higher margins in NZ than Australia.
Comparisons are always interesting. This is information that should be before NZ citizens eyes.
Of course bank apologists will protest over this wider information, and send in their social media infiltrators to dismiss as irrelevant.
Why the reaction GA?
And here is the proof.
We savers are better off TO A GREATER extent than than borrowers are worse off.
As I said....we love our NZ banks.
I am not comparing investment types.
I am comparing, NOW SUPPORTED by DC's article, the bank deposits in NZ and the bank deposits in Aussie.
As I previously posted we are BETTER off with deposits here in NZ than Aussie.
The other side of the boring repitition we get from one or two posters here who harp on about Aussie mortgage rates.
I'm afraid Spottie those two have obviously never traveled, or at the very least don't seem to understand geography and the simple fact that NZ and Australia are different countries - countries that actually have different: growth rates, inflation, debt levels, market liquidity, currencies, politics, central bankers.........and as a result...different interest rates.
It's amazing how the world works but so complicated to understand.. of course if we wished upon ourselves zero growth rates, 25% unemployment rates, and deflation we could equally be luckly enough to be just like Europe with damn near zero interest rates...something to look forward to ...we have to try harder, but wait...we might be..see the trend in the polls.
But then again others might just hope that the education system starts turning out a more informed populist....wishful thinking I'd suggest
Yes Spottie, NZ banks cost of funds across the curve are well more than 1% expense than for their Australian parents - e.g. NZ 3yrs swap rates (base) are around 4.20%, Australian 3yrs swap around 2.80% i.e. what the world are setting both countries long-term wholesale rates at. Add to that the banks various liquidity funding costs above swap, which are lower for the same Australian bank funding externally than what its NZ entity can raise funds at, then the difference is explained and damn obvious. But surely this is so basic the point of the couple of postings here can't be trying to niaively make more out of it ? Its why I asked the simple question that was not answered.
Its a matter of placating our creditors Boatman. The financial markets are easily spooked and the consequrnces are potentially disasterous.
After all igf one would care to look one would find that the Asian Crisis was precipitated by a correction in Thailand's real estate market, and further compounded by the misguided response by the IMF. Unfortunately the economic doctrine so slavishly followed by international finance officials back then still holds sway over the minds of those in positiond of ower here.
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.