ANZ NZ increasing one to three-year fixed-term mortgage rates

ANZ pushes one-year, 18-month, two-year and three-year fixed-term mortgages rates higher

Personal Finance

ANZ pushes one-year, 18-month, two-year and three-year fixed-term mortgages rates higher

16th Sep 21, 7:41am by Gareth Vaughan

ANZ NZ is increasing both its "standard" and "special" one-year, 18-month, two-year and three-year home loan interest rates.

The increases range from four to 15 basis points, and are effective from Thursday (today), September 16.

With its one-year special rate rising five basis points to 2.60%, ANZ's now above the 2.55% offered by ASB, BNZ and Westpac NZ. And most smaller banks are lower than that.

ANZ's new 18-month special, at 2.85%, takes it above ASB and BNZ's 2.79%. And its four basis points increase to 2.99% with the two-year rate, takes ANZ four basis points above ASB, BNZ and Westpac with several other banks lower still.

In terms of the three year rate it's more of a mixed picture, with some banks below ANZ's new 3.40% special, and some above.

Separately, Kiwibank also hiked mortgage rates earlier in the week.

See all banks' carded, or advertised, home loan rates here. The tables below outline ANZ's changes, with details of what's required to get a special rate below.

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15 Comments

by thinktank | 16th Sep 21, 8:08am 1631736499

So they backtracked after jumping the gun a few weeks ago… and then backtracked on their backtrack?

by ikimpaul | 16th Sep 21, 8:58am 1631739535

Apparently the RBNZ is indicating they are going to lift rates on the 6th October -Level 4 or no Level 4. ANZ is just preempting this. Huge fears in the RBNZ on the inflation and GDP numbers and they are losing patience with the continued housing market growth.

by Brutus Iscariot | 16th Sep 21, 10:45am 1631745909

Yes, it's fascinating. Courtesy of the elimination strategy, we are a "closed circuit" economy effectively ring fenced from the normal drivers of the global cycle.

The most obvious thing is that the local economy is running at maximum capacity, due to supply constraints and the lack of our usual immigration cheap labour buffer. Consumer behaviour now shrugs off lockdowns, we can't spend money overseas so splurge here, and any cash flow gaps for individuals and businesses are plugged by the government.

This is a recipe for sustained inflation above 3% and the RBNZ know it.

by lowercase capitalist | 16th Sep 21, 9:19am 1631740790

Perhaps they just jumped the gun on backtracking.

by tulips | 16th Sep 21, 9:18am 1631740736

Is everyone switching to BNZ then?

by Galloleous | 16th Sep 21, 9:52am 1631742730

Ill go where ever I can get the best rates. Having loyalty to a bank.....

by Contrarian | 16th Sep 21, 9:50am 1631742611

They seem to be pricing themselves out of the competition ? Or is the demand coming down for home loans ?

by Carlos67 | 16th Sep 21, 10:23am 1631744635

The demand for new home loans just has to come down. There is an ever increasing gulf between those that can afford a house and those that cannot. There must be now a big gap that has been created in a very short time, its just math. If you didn't buy a house in the last 12 months because you couldn't afford it, effectively you have now been priced out of the market by at least 5 years. Its time for banks to start making more money out of those that could afford the mortgage to cover the loss. Banks are not interested in those still stuck in the gap and remember every business expects to make more profit each year than they did the last.

by DollarsandSense | 16th Sep 21, 10:45am 1631745907

what is the "loss" that you refer to that the banks need to cover....perhaps my memory is going but I don't recall any of the big four actually making a loss since the early 1990s? happy to have this clarified

by npc | 17th Sep 21, 10:40am 1631832011

I think it would take some effort to make a loss. They have permission to magic money into existence and lend it out with interest, secured by an ever inflating asset.

by Independent_Observer | 16th Sep 21, 10:43am 1631745802

Pricing themselves out of the competition, or reducing their exposure to the insanity?

by 7jai | 16th Sep 21, 12:44pm 1631753085

Take 2 steps forward, take 3 steps back. Take 1 step forward, take 2 steps back.... *rinse & repeat*

by Colin Nemo | 16th Sep 21, 3:01pm 1631761314

There's never been a better time than to be ANZ Bank. Earning more interest with the same amount of work.

by Doggog | 18th Sep 21, 11:09am 1631920172

Maybe the banks are spooked. Praying the CCP will paper over this company's $300 billion, that it is unable to make payments on.

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by EpsomArtsandCrafts | 18th Sep 21, 8:02pm 1631952136

Massive profit margins on the cheap money they've got available