Less than a week after rival ASB trimmed some key rates, ANZ has now moved to match them. And it has lowered other rates to stay in touch with its key rivals

ANZ has decided it can't live with its current mortgage rate settings following ASB's recent cuts.

Now New Zealand's largest home loan lender has responded with its own cuts, and made them across the board.

ANZ have matched ASB with a 4.29% one year 'special' rate.

And they have matched ASB with their new 4.49% two year 'special' fixed rate. Both of these changes involve a -6 bps reduction.

They have taken -14 bps off their three year 'special' rate, taking it down to 4.85%, which is not quite as low as the ASB offer.

For rates longer, the changes are to their standard fixed rates.

ANZ's four year rate drops -4 bps to 5.85%.

And their five year fixed rate drops -10 bps to 5.99%.

The result is a carded rate offering that is still on the high side for longer terms but is not as uncompetitive for these terms as it was.

ANZ's key fighting rate is clearly their one year 4.29%. That matches ASB, the Cooperative Bank, SBS Bank, ans TSB.

Only HSBC has a lower one year fixed rate at 4.19%. And of course nothing matches HSBC Premier's 3.85% eighteen month fixed rate 'special'.

ANZ's 'specials' do come with requirements others don't always impose. In addition to needing to have an ANZ transactional account with salary direct credited, you also need to commit to one other ANZ product if you are a new customer.

In wholesale markets, swap rates have been little changed in more than a year, so wholesale money costs are not behind the move at the short end. Competition is.

At the longer end, perhaps falling swap rates are allowing those reductions.

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 June 20, 2018 % % % % % % %
4.99 4.29 5.15 4.49 4.85 5.85 5.99
ASB 4.95 4.29 4.39 4.49 4.79 5.39 5.59
5.35 4.39 5.05 4.55 4.99 5.89 6.09
Kiwibank 4.99 4.35   4.39 4.85 5.19 5.39
Westpac 5.25 4.39 5.15 4.55 4.94 5.89 5.59
4.80 4.29 4.45 4.55 4.89 5.39 5.59
HSBC 4.85 4.19 3.85 4.29 4.89 5.29 5.59
HSBC 4.99 4.29 4.59 4.55 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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Looks like the New Zealand credit apartheid is getting worse. Home owners/buyers offered cheaper rates while payday lending rates ratchet up - fascinating.

Evidence ? (on payday lending rates)

Well .. The Commerce Commission launched High Court proceedings against payday lender Ferratum, which it says charged borrowers 183 percent in interest. The Commission is also currently reviewing websites of 215 lenders to determine if they are complying with "lender responsibilities".

We wait with bated breath for the review, though I have no reason to believe The Commission will make it public. I am drawing from anecdotal evidence to reach my conclusion on 'payday lending'. I'm open to be proven wrong, but it speaks volumes that the anecdotal evidence is stacking up and proper statistics are scarce.

Hang on. Your claim was that pay day lending rates are "ratcheting up" and "getting worse". We have been following this sector for some time. Our most recent detailed report is here. My question is whether you have any evidence that the rates that this sector have always imposed have gone up recently. That is the evidence we need. Just because you stumbled on this these lenders doesn't make it anything new.

Our review may well have had something to do with the Commerce Commission pushing forward with their investigation.

By the way, you need to do some basic analysis. The cost of credity charged by this sector is far, far more than "183%". After our own review, we built a tool where anyone contemplating using pay day lending services can easily work out what they really charge.

But the simple fact is, no-one really knows how big this sector is. That is one question that needs to be followed. But we can shine a light on when their rates and charges change. That is why I was asking. We need evidence.

David Chaston
More power to you
There should be no payday loans at all
Its a parasitic business praying on the financially illiterate & poor folks mainly
The government has failed kiwis by allowing these extreme interest rates for too long
Worse the National Party had JK a finance guru as leader & PM of NZ for years What was done to protect poor kiwis from this usury ?
Sadly NZ is not alone condoning the payday loan usury

ANZs 4 and 5 year rates are terrible. Not that anyone will be choosing those terms anyway.