New Zealand's largest home loan bank has chosen to match the hot one year rate offer from the smallest of their major home loan rivals as wholesale rates stay low

New Zealand's largest home loan bank has chosen to match the hot one year rate offer from the smallest of their major home loan rivals as wholesale rates stay low

ANZ has set an effective new lower one year fixed mortgage rate, matching Kiwibank.

It's not quite a formal rate change, but ANZ says its staff can match Kiwibank’s one year home lending rate of 3.39% "for ANZ customers, subject to their terms and conditions".

And the new position will be putting pressure on all the other large Aussie banks.

Frontline staff have been advised of the change, but it has not been reflected on ANZ's website.

Kiwibank moved to the new lower level on Monday, and at the same time boosted its one year term deposit rate by +5 bps to 2.75%.

At this time we have no indication of term deposit rate changes by ANZ although their current one year TD rate is 2.65%.

Kiwibank have a cashback promotion of $3000 for customers who switch to them from an Aussie-owned bank and borrow at least $250,000+. This promotion is due to end on Sunday, November 24, 2019. It requires you remain with Kiwibank for a minimum of three years

ANZ also has a cashback promotion and their will expire on November 30, 2019. Its terms are for new borrowing of $200,000+ with new residential security provided, and is conditional on you maintaining all your banking and home lending with ANZ for three years.

The recent uptick in wholesale swap rates hasn't developed further and are starting to decline again, so these rate levels have remained near record lows.

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 November 19, 2019 % % % % % % %
               
ANZ 3.65 3.39 3.99 3.45 3.99 4.75 4.85
ASB 4.29 3.55 3.75 3.45 3.89 4.19 4.29
4.79 3.55 4.55 3.45 3.99 3.99 3.99
Kiwibank 4.29 3.39   3.55 3.89 3.99 3.99
Westpac 4.79 3.55 4.25 3.45 3.99 4.35 4.45
               
Bank of China 3.99 3.15 3.39 3.39 3.79 3.99 3.99
Co-operative Bank 3.49 3.49 3.59 3.59 3.89 3.99 4.09
China Construction Bank 4.70 3.15   3.15 3.19 3.30 3.45
ICBC 4.29 3.18 3.18 3.18 3.20 3.99 3.99
HSBC 4.19 3.35 3.35 3.35 3.35 3.35 3.35
HSBC 4.29 3.65 3.69 3.39 3.89 4.49 4.49
  4.35 3.55 3.55 3.45 3.89 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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23 Comments

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Yippee

Why? It's confirmation of all things bad...I reckon when the 2-year rate hits 1.99% and the OCR is 0% and the LVR's are at 95% this country will be in such a state that we won't know what's hit us. NZ$ at 50 cents or below and petrol at $3 per litre....All those things will be required to keep the economy 'afloat', but for how long, and then what?

I suppose it depends if you're an asset holder wth a mortgage or not

And ...a job... of course! Having millions in assets and no income to service the loans/daily costs is exactly why interest rates are going to unbelievable levels. But will it work? I doubt it! Even you must see by now that 'things ain't good'? No? I guess that's what makes a market...
https://www.abc.net.au/news/2019-11-15/business-is-booming-for-liquidato...

"We're starting to see some interesting signs of distress arising amongst both firms and individuals..Previous downturns, like the recession of the 1990s and the global financial crisis of a decade ago, had an impact across society, but largely concerned corporate debt. ... this slowdown will hit families even harder.."

You'll be relieved to know that unemployment is at historical lows, so you do not need to worry about no income : )

I'm not worried at all. I don't have to rely on the weekly rental payments from my currently-employed-at-historical-low tenants. Many do....

That's why the Government tops them up. We're all in this together bw.

You think the unemployment benefit + accommodation supplement is going to replace a couple of full time low wage jobs? Even from minimum wage that going to be a $400+/week drop in income.

Quoting you from your earlier post above (and many others):

"It's confirmation of all things bad... this country will be in such a state that we won't know what's hit us."

Sounds to me like you're worried

The RBNZ wants your petrol, groceries, everything to cost more.

Sounds weird when you say it out loud but that's the craziness of modern central banking.

That scenario is quite foreseeable.

Cheap credit!

Bring it on!

TTP

Who was it who said:

"Gold is the money of kings,
"Silver is the money of gentlemen,
"Barter is the money of peasants,
"Debt is the money of slaves.

Someone very poor and very ignorant. Bill Gates, Richard Branson and all self made billionaires started their businesses with debt

I can confirm that ASB will also do 3.39% for 1 Year.

It's easier to get a discount from the window rate. The other 3 big banks will follow ANZ now.

David Chaston, ANZ will also offer 3.39% for 18 months which I believe is a leading rate amongst mainstream banks for this term ; )

Yes the interest rates are cheap, however the Banks are still calculating the debt servicing at at least 6%, so it isn’t as easy as saying we can afford to borrow at 3 odd per cent, and think that you are going to get a loan.

Good.

The other day I read that swap rates go higher.. today fixed mortgage goes down? Are the banks competing at the cost of profit?

So let me get this straight -- because the article is edited but changes not called out.

ANZ has said it will match KB rate below the line for ANZ customers...

This is pretty standard practice among the main banks, so not clear why this gets an article?

We are re fixing our mortgage at the moment and ANZ Offering:
6 months 3.49%
1 year 3.39%
18 months 3.39%
2 years 3.45%
3 years 3.84%
4 years 4.19%
5 years 4.29%

.