New Zealand's largest home loan lender launches a limited time one year 'special' that undercuts all its main rivals

Following home loan reductions by both ASB and BNZ today, ANZ has announced one of its own.

It is reducing its one year fixed rate 'special' by -10 bps, taking the rate down to 4.25%.

That makes it the lowest one year carded offer from any bank other than the 4.19% offer by HSBC Premier. It undercuts all its main bank rivals.

It will only be available until April 30, 2018.

As a 'special', it requires at least 20% equity in the property, and customers need to have an ANZ transactional account with salary direct credited. Plus new home loan customers need to commit to one other ANZ 'product'.

This change, along with the others announced today, come as wholesale swap rates are on the move up for terms of three years and less. Since the beginning of March the one year swap rate has risen from 2.02% to 2.15% with most of that increase happening in the past few days. The two year swap rate has risen from 2.19% to 2.29%.

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 March 23, 2018 % % % % % % %
               
4.99 4.25 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.39 4.49 4.59 4.89 5.39 5.59
5.35 4.39 5.05 4.49 4.99 5.89 6.09
Kiwibank 4.99 4.29   4.65 4.99 5.65 5.69
Westpac 5.25 4.39 5.15 4.65 4.94 5.89 5.59
               
4.80 4.39 4.65 4.65 4.99 5.39 5.59
HSBC 4.85 4.19 4.19 4.29 4.89 5.29 5.59
HSBC 4.99 4.35 4.59 4.64 4.99 5.49 5.55
4.85 4.29 4.39 4.55 4.89 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 10-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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9 Comments

Based on a previous article here it looks like lenders are compressing their profit margins to chase steep growth targets in a slowing housing market.

Floating Mortgage rates are still very high given the higher risk taken by borrowers.
Nearly 6% during a global era of ZIRP.
1 year fixed, rolling over, is the new floating.

They will give a similar rate for 6 months , or within 0.1 % of it . Last time i fixed there was a 0.05% difference between their 6 and 12 month offers. Unless someones circumstances are very likely to change within 3 months, floating is costing a fortune compared to fixed.

ANZ offers 4.25% - sheesh - I thought the headline was for a term deposit rate!

It will be pretty attractive to FHB's.

TTP

Wholesale swap rates never seem to have influenced mortgage rates much. Not in the short term anyway .

Don't most people negotiate a discount off the carded rates? Anyone keen to share recent offers?

Mine is up for renewal at the moment and have been offered 4.09% for 1 year and 4.25% for 2 years by both my current bank and BNZ :)

I work for NZPOST & my mortgage rate is less than All of these because I get a staff discount through Kiwibank. I still feel very much that floating rates are not low enough hence I fixed for a year.