Mortgage rate drop

After withdrawing its cash incentive, ANZ launches a new one year 'special' home loan rate of 5.75%, a market low

2nd Sep 14, 5:44pm by David Chaston

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%

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Fixed mortgage rates

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Source: interest.co.nz

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21 Comments

by MortgageBelt | 2nd Sep 14, 6:00pm 1409637657

If you want to sell more of something, then you need to lower the price.

Loan growth is slowing, so mortgage rates are lowering.

If 2015 sees OCR hikes to 4.5% as predicted! imagine the effect on loan growth or decline.

by Boatman | 3rd Sep 14, 10:27am 1409696823

Your observations are only part of the problem , the other element influencing fixed rates issue is that the banks are awash with money from overseas chasing higher yields , and banks cannot just sit on the cash .

Graeme Wheeler cannot be too happy about this

by The Bear | 2nd Sep 14, 8:23pm 1409646211

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.

by MortgageBelt | 2nd Sep 14, 8:45pm 1409647547

Australia keeps OCR at 2.5%

by BigDaddy | 2nd Sep 14, 9:39pm 1409650751

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:

https://www.facebook.com/Newlandburling

by Grant A | 2nd Sep 14, 10:03pm 1409652192

What's the relevance of the comparison Big Daddy ?

by MortgageBelt | 2nd Sep 14, 10:34pm 1409654053

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?

by spottie | 2nd Sep 14, 10:42pm 1409654548

And kiwi expats are coming home to NZ .

That the difference I can spot Bigdaddy.

by Chairman Moa | 3rd Sep 14, 11:08am 1409699307

I ain't coming home! there is a fair bit of juice left in the lucky country (if you know where to look). Beside after September 20th, Russell will have a fair bit of power so we might have to hang around here for awhile.

by keywest | 3rd Sep 14, 6:17am 1409681832

Just got 5.85% for 3 years

by BigDaddy | 3rd Sep 14, 6:50am 1409683835

ANZ AU 3 year fixed 5.09%

HSBC AU 4.79%

Westpac AU 5.04%

Also many Aussie banks have 9 year fixed rates.

by spottie | 3rd Sep 14, 7:25am 1409685924

And NZ banks are paying around 5.25 - 5.50% for 2 -3 year deposits.

NZ Banks are great !

by spottie | 3rd Sep 14, 7:25pm 1409729158

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.

Who is better off ?

by MortgageBelt | 3rd Sep 14, 7:29pm 1409729392

Less tax on earnt interest

by spottie | 3rd Sep 14, 7:41pm 1409730112

Do they pay tax on interest earned in Aussie MB ?

The article after all is a comparism between the 2 countries.

by MortgageBelt | 3rd Sep 14, 7:58pm 1409731109

Bank deposits are not a particularly good investment after tax is deducted., regardless of whether you're on East Island or West Island.

by spottie | 3rd Sep 14, 8:45pm 1409733946

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.

by Grant A | 3rd Sep 14, 9:57pm 1409738265

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

by Grant A | 3rd Sep 14, 9:46am 1409694378

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.

by Boatman | 3rd Sep 14, 10:28am 1409696934

Typical , New Zealand's Reserve bank is out of kilter with the rest of the world , marching away to the beat of its own drum .

by Anarkist | 3rd Sep 14, 11:51am 1409701881

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.