New Zealand's largest home loan lender has reduced two of its 'special' fixed mortgage rates, following SBS Bank. But BNZ raises a key rate

New Zealand's largest home loan lender has reduced two of its 'special' fixed interest rates.

The rate changes become effective Tuesday, September 19, 2017.

ANZ has trimmed -6 bps off its two year 'special' to 4.69%.

And it has added a new 'special' for a three year term, setting that rate at 4.99%.

This three year rate involves a -60 bps drop from their standard rate which was 5.59%, but which has now been reduced to 5.49% on Tuesday.

ANZ 'specials' are available to customers with at least 20% equity in their property, plus you need an ANZ transactional account with your salary direct credited, and you need at least one other ANZ 'product' (like insurance, or a credit card, and the like).

No ANZ 'specials' are available with any package discounts.

Also today, SBS Bank reduced its two year 'special' to 4.69%, a -10 bps drop.

Going the other way, BNZ actually increased its two year 'special, from 4.69% to 4.75%, a +6 bps rise which in the context of the other changes today looks a little odd.

Maybe BNZ has been looking at the recent swap rate changes and seeing these rising over the past few weeks. The two year swap rate is currently at a six week high. Rates for longer terms are gaining faster.

Our wholesale rates will be led by the announcements that come out of the US Federal Reserve on Thursday. These are widely expected to signal a start to draining the huge level of QE that built up during the GFC. Interest rate signals are also expected; markets anticipate at least one more +25 bps rise by the American authorities by Christmas 2017, but all eyes will be on their dot plot - and other are expecting a soft signal there.

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

Here is a snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % % %
4.99 4.55 5.15 4.69 4.99 5.89 6.09
ASB 4.95 4.45 4.60 4.69 4.99 5.49 5.69
5.35 4.59 5.05 4.75 5.09 5.89 6.09
Kiwibank 4.99 4.45   4.65 5.09 5.75 5.99
Westpac 5.25 4.59 5.15 4.69 5.09 5.89 5.59
               
4.80 4.55 4.75 4.75 5.09 5.55 5.75
HSBC 4.85 4.09 4.09 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.85 4.69 5.25 5.49 5.85
4.85 4.55 4.65 4.69 4.99 5.55 5.69

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

And TSB Bank still has a ten year fixed rate of 6.20%.

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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7 Comments

Mortgage borrowers will be looking for sub-4.5% rates into spring.

Not surprising that the Ozzy banks are dropping their mortgage rates considering how many dodgy mortgage loans they have on their books, oh and the NZ housing market is crashing. Nothing to see here.

FYI, last week I was offered 4.38% for 1 year and a surprising 4.32% for 6 months from ANZ for a loan renewal

Similar rates were available at the start of the year. The interest rates are definitely flat. It's still a good time to refinance.

Last week i locked in 6 months at 4.30% on a $600,000 loan - renewal. 1 year was also offered at 4.30. ANZ

These current UK Teaser rates can't be far away, given the disaster that's on the NZ property market horizon....
"0.99%, then 3.69% HSBC" - (A mortgage payable over 25 years, initially on a discounted variable rate for 24 months at 0.99% (variable) and then on our current variable rate of 3.69% (variable) )

No thanks - I hate to think what that would imply for savings and TD rates, which are already pretty anemic.