New Zealand's biggest home loan lender signals a more aggressive market position with two lower rate 'specials'. BNZ adjusts an out-of-line rate

ANZ is shifting two key fixed mortgage rates lower.

And BNZ changed one of their fixed mortgage rates down as well.

The BNZ change is to their three year fixed rate, taking it under 5% and more in line with the market.

ANZ has cut -10 bps from its one year rate, taking its 'special' down to 4.45%.

And it has trimmed -4 bps from its two year 'special' fixed rate to 4.65%.

This two year pricing matches Kiwibank and gives it a small edge over all its rivals except HSBC.

Their one year rate has fallen -10 bps to 4.45% but it still lags ASB who has a 4.39% rate for that term. HSBC has an even lower offer.

These changes come just before the REINZ releases its October data on Wednesday and that is expected to show low transaction volumes in the middle of what is usually a busy Spring selling season. Data for both Barfoots in Auckland and Harcourts nationally have already signaled restrained activity. As a consequence, banks are facing lower opportunities to win market share among the churn in house selling.

In a recent interview with interest.co.nz, ANZ CEO David Hisco said ANZ is 'back in the game' for mortgage lending, suggesting a more aggressive drive is coming from New Zealand's largest home loan lender.

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

Here is the full 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 
as at November 15, 2017 % % % % % % %
               
4.99 4.45 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.39 4.60 4.69 4.99 5.49 5.69
5.35 4.59 5.05 4.69 4.99 5.89 6.09
Kiwibank 4.99 4.55   4.65 4.99 5.75 5.69
Westpac 5.25 4.59 5.15 4.69 4.94 5.89 5.59
               
4.80 4.55 4.69 4.69 4.99 5.55 5.75
HSBC 4.85 4.19 4.19 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.69 4.69 4.99 5.49 5.69
4.85 4.55 4.65 4.69 4.79 5.55 5.69

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

And TSB 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

Short term fixed is the new floating.

Absolutely !

Yes, rolling the short end is the best strategy at the moment.

And the RBNZ is talking about changing the LVR's as well?!
Something is very amiss with the local market/economy if BOTH these 'encouragements' are being thrown into the mix at the same time.
We know what it is, of course. An economy based on an overextended, potentially illiquid, asset base (just see how many buyers there are if 'it' all turns to custard!) and Fear of the Debt Machine grinding to a halt, but it will if we are down to using up our marginal borrowers before they are needed. And when that happens, just like banning Short Selling - who is going to be there to Catch the Falling Knife? No one.....

Turns out all the talk of "never been more affordable, payments are easy" etc. misses the fact deposits are also out of reach of many Kiwis now. Thus, who can buy?

Will need to throw in a trip to Samoa or an Ipad . More carnage in Barfoots auction rooms today. Already 240 Billion in mortgage debt- astonishing, not even a free trip.

Ignore these published rates - negotiate and you should be able to secure 4.19% fixed for 1 year