ANZ takes an axe to two key mortgage rate specials, and pays for it with across the board cuts to all its term deposit rates. Low rates keep shifting lower

ANZ takes an axe to two key mortgage rate specials, and pays for it with across the board cuts to all its term deposit rates. Low rates keep shifting lower

The largest mortgage lender has launched a two year fixed rate of 3.59%.

This is the market's lowest two year rate.

It represents a rate cut of -16 bps and is at least -10 bps lower than most of their main rivals, -6 bps lower than the equivalent Kiwibank offer.

But it is not as low as Kiwibank's 3.55% one year fixed offer which is the lowest rate in the market at this time.

Kiwibank did cut its one year rate by -4 bps to 3.65%, but that is still a full +10 bps higher than the Kiwibank rate for the same term.

But there is plenty of anecdotal evidence to confirm that most banks will match any leading rate if pressed - provided you have strong enough financials to support the lending.

At the same time, ANZ has taken another -5 to -10 bps off all its term deposit rates. That takes their popular 6 month rate down to 2.80% and their one year rate is also at the same level now. The only way you will get 3% from ANZ now is by agreeing to lock your funds up for five years. Update: Their eight month TD 'special" of 3% is still available.

Still, even after these reductions, ANZ's rates compare well with its main rivals, some of whom have made even tougher reductions.

The other factor to watch is wholesale swap rates. They turned back down sharply today which was as expected following the sharp dose of fear that infected Wall Street at the end of last week. They may well be in for more turbulence if Wall Street opens lower again tonight.

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

Fixed, below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at August 27, 2019 % % % % % % %
               
ANZ 4.29 3.65 3.99 3.59 3.99 4.85 4.95
ASB 4.29 3.75 3.75 3.69 3.89 4.19 4.29
4.79 3.69 4.55 3.75 3.99 4.35 4.45
Kiwibank 4.79 3.55   3.65 3.99 4.29 4.39
Westpac 4.99 3.69 4.79 3.75 3.99 4.35 4.45
               
Co-operative Bank 3.69 3.69 3.75 3.75 3.99 4.19 4.29
China Construction Bank 4.70 4.85   3.65 3.90 4.95 4.95
ICBC 5.15 3.79 3.79 3.75 3.99 4.29 4.39
HSBC 4.65 3.65 3.69 3.69 3.85 4.19 4.29
HSBC 4.29 3.69 3.69 3.69 3.99 4.49 4.49
  4.55 3.85 3.89 3.79 4.05 4.45 4.55

In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here. And term PIE rates are here.

Fixed mortgage rates

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Lending rates just keep on (and on and on and on and on) getting more seductive.

Bring on the Maserati, the Merc and the Porsche......

TTP

Why? Is the cost of servicing car loans going to plummet?

12
up

Never borrow money on a deprecating asset.

Well said BR

Meaning: Seductive - "a beautiful woman who uses her charm, her wit, and her beauty to manipulate men into doing what she wants, usually to their ruin."
(Swap out 'beautiful woman' for 'falling mortgage rates' and I reckon you've hit the nail on the head!)

Time for Bitcoin

LOL

I smell desperation.

With a hint of greed.

A bit more desperation to 3% would be great, blind panic to 2% even better.

How about -1%?

Negative rate would be great but I don't want to get my hopes up too high;)

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=122...

"Kiwibank did cut its one year rate by -4 bps to 3.65%" should be ANZ.

Floating rates are pretty great now, soon it would make sense to go 100% floating and pay off faster with an offset. All those lovely tax free extra principal repayments. Mwahaha!

No deduction for repaying principal unless you're a property trader.

Theres a story in the herald - Aussie banks muscling in on Heartlands turf - SME type stuff. Heartlands comment : " "We were charging loans at 7 per cent and banks were taking them off us at 4 or 5 per cent.

That's been going on for some time, but last year it escalated as banks went downwards in loan size and started targeting more loans at rates we couldn't compete with," he says.

This kind of behaviour tends to happen in a downturn, he says. "

Banks are starting to compete for business lending. Things must be bad.

Interest rate cut insanity I am afraid is just making deflation monster even more dangerous.

Interest rate cut will reignite housings values upwards

I think you got a typo David,

"Kiwibank did cut its one year rate by -4 bps to 3.65%, but that is still a full +10 bps higher than the Kiwibank rate for the same term"

If that headline picture was truly appropriate, it would show the lumberjack chopping away at the tree UNDERNEATH his standing position...