ANZ raises rates across the board

Personal Finance / news

NZ's largest bank raises fixed and floating home loan rates, savings account rates, and term deposit rates in a broad response to the recent RBNZ OCR rises

[updated]

12th Apr 23, 4:34pm by David Chaston

Source: 123rf.com Copyright: andreypopov

ANZ New Zealand has raised its retail interest rates across the board.

This comes after it, along with almost all other banks, ignored the Reserve Bank's +50 basis points Official Cash Rate (OCR) hike in February.

But another +50 bps Reserve Bank (RBNZ) OCR rise on April 9 has tipped the scales.

These latest rises by ANZ include:

- a +40 bps rise to its floating rate to 8.39%, effective for existing borrowers from Thursday, April 27.

- about a +20 bps rise to fixed mortgage rates for terms of two years and less. (The key two year carded rate will rise by +14 bps to 6.59% on a 'special' basis).

- term deposit rates will rise between +10 bps and +25 bps for all terms to 18 months.

- ANZ's Serious Saver rate will rise by +50 bps to 4.25% including a +25 bps rise in the base rate and a +25 bps rise in the bonus rate.

After these changes ...

ANZ's 8.39% floating rate is the highest floating rate of any bank. The lowest floating rate is 6.99% from Heartland Bank.

ANZ's one year fixed rate becomes 6.74%. The lowest one year fixed rate is from Heartland Bank at 6.14%. ANZ's two year carded fixed rate is now 6.59%. That compares with the lowest bank two year fixed rate of 5.99% also at Heartland Bank.

ANZ's new 4.25% Serious Saver potential rate compares with the The Co-operative Bank's existing 4.50% Step Saver rate.

ANZ's new six month term deposit rate offer of 5.20% compares with 5.50% currently offered by Heartland Bank, Kookmin Bank and China Construction Bank for the same term. But is is higher than the rates offered by all its main rivals.

ANZ's new one year term deposit rate offer of 5.70% compares with Rabobank's 6.00% one year offer, and Heartland Bank's equivalent 6.00% offer. But is is higher than the one year rates offered by all its main rivals.

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42 Comments

by Officebound | 12th Apr 23, 4:42pm 1681274578

If you lend them $1 for a year or 5 years, they lend it out, with a 1.5%-2% margin.

If you lend them $1 for a day, they lend it out for a 4% margin.

by hamsterintheclouds | 13th Apr 23, 9:14am 1681334041

Because of reserve requirements, short term depos are not really worth much to banks

by Dgm | 12th Apr 23, 4:43pm 1681274635

Someone had to break the ice..

Housing market in for a hard and rough winter..

by starrider | 13th Apr 23, 10:19am 1681337978

Winter is coming.

Looks positively frigid for the real estate industry.

by Pragmatist | 12th Apr 23, 4:55pm 1681275313

OCR goes up 100bps, fixed mortgage rates go up 14bps. No wonder they are talking about DTIs and other regulations, the bat they were trying to smash the market with appears to be a foam bat from the toy store.

by OldSkoolEconomics | 12th Apr 23, 5:06pm 1681275966

Maybe RBNZ were expecting rates to drop? In that case and whilst mortgages havent gone up a lot.. RBNZ may have forced a marginal rise on top of already high rates to keep people worried

by JimboJones | 12th Apr 23, 6:41pm 1681281698

Floating just went up 0.4%. The two year fixed rate isn’t just priced on todays rate, it’s priced on what the market thinks will happen over the two years, and it seems the market thinks interest rates will not be high for long.

by Llama_360 | 13th Apr 23, 9:07am 1681333622

What sort of consequences will there be for banks if they have priced their mortgage books on the assumption rates will drop only for them to continue going up? I assume they will suffer some losses?

by hamsterintheclouds | 13th Apr 23, 9:17am 1681334230

They hedge the interest rate risk in the swap market, therefore as long as they are pricing to market the interest rates movements will make no difference to the value of their books

by Befuddled | 12th Apr 23, 4:57pm 1681275420

It's like they were just waiting for Tony's statement... 'As each week goes by, more and more people are going to realise and accept that fixed mortgage rates in New Zealand actually reached their peaks almost three months ago. And more and more people will realise that despite the official cash rate increasing by 1 percentage point since February, bank floating mortgage rates have not gone up at all..

by IT GUY | 12th Apr 23, 5:15pm 1681276535

Tony Who

by JimboJones | 12th Apr 23, 6:39pm 1681281567

I’m sure he’ll find a reason for house prices to rise regardless.

by Nifty1 | 12th Apr 23, 6:49pm 1681282185

NZHL might want to take down this video of Tony that was loaded today...https://youtu.be/mZag4TkxodU

"I'm 99.9% sure rates are at their peak now"...LOL

by Nzdan | 12th Apr 23, 6:54pm 1681282493

Reckon ANZ saw his video and thought they'd do a sneaky troll?

by Nifty1 | 12th Apr 23, 6:59pm 1681282785

The guy's trolling himself at this stage...

by Kohukohunui | 12th Apr 23, 8:05pm 1681286721

"It's the start of the beginning of the first part of the end game for house prices declines"

by JimboJones | 12th Apr 23, 7:07pm 1681283263

I’m 99.9% sure his advice is not impartial.

by Justa comment | 12th Apr 23, 7:45pm 1681285549

Exactly,. he USED to be an economist with BNZ, but now he works in another industry........

by IKiwi | 12th Apr 23, 5:03pm 1681275832

I'm of mixed thoughts on ANZ's move to hike.

Most of that comes from what's happening globally between USA, China and Russia with the EU (France) wanting the EU to stay out of any conflict between the west and China. I think that capatilsim as we know it is about to change if the global order changes

by IT GUY | 12th Apr 23, 5:53pm 1681278830

Capitalism stays the same, but globalisation falls apart..... interest rates will go higher in this environment and money not flow redily between the blocks, eurodollar funding market in big trouble imho

by Greg-Hamilton | 13th Apr 23, 9:03am 1681333400

Watching eurodollar uni - Jeff videos?

I don't really understand what he says.. but seems to make sense. But then Fed overpower his thoughts

by interesting1234 | 13th Apr 23, 10:25am 1681338314

Short the Euro, go on, have a flutter

by Juzz | 12th Apr 23, 5:46pm 1681278418

RB is going to be pleased, next meet might only be 25bps if banks start listening

by Baywatch | 12th Apr 23, 5:54pm 1681278867

Thanks John Key..sorry Sir John Key

by Rubb3rduck3y | 12th Apr 23, 7:43pm 1681285390

Not going to play it down this is going hurt on my 500 odd mortgage when we refix in October. And we are on above avg incomes. Can only imagine what happens to the avg income earners.

by kwbrn | 12th Apr 23, 9:46pm 1681292798

I felt exactly the same way when I was getting .8% on my term deposits.

by ChrisOfNoFame | 13th Apr 23, 9:48am 1681336122

I doubt you felt in anyway similar.

by kwbrn | 13th Apr 23, 11:09am 1681340957

If your boss told you he is cutting your salary by 25% so he can bid more at property auctions, then you would know how I feel.

by Nzdan | 13th Apr 23, 11:35am 1681342558

I assume Rubb3rduck3y was also receiving 0.8% on term deposits while saving for a house deposit. Anyway, term deposits needed to be 0.8% so that a generation of home owners who bought at 2 - 3 x their annual income could convert their surplus properties into term deposits at 10 - 12x the annual income. Now that's been done, they can start enjoying a decent return on capital they did not actually earn.

by Nzdan | 12th Apr 23, 9:55pm 1681293355

Fortunately we're locked in until Dec 2026 on sub-5%, I was just going to cruise along with current payments but it might be time to *wallet shut* for a bit and knuckle down the allowable extra principal payments.

by IT GUY | 13th Apr 23, 6:58am 1681325902

The RBNZ will welcome your help

by rolande | 13th Apr 23, 8:26am 1681331175

Depending on you terms, every dollar you invest now is saving future you up to two dollars. It's magic!

by Nzdan | 13th Apr 23, 8:54am 1681332871

100%. We're 16 months into a new mortgage on a 30 year term, so now's the time to be doing it. Much like with our first home, I get a year or so's expenses data behind us and then ramp up the payments.

Would comfortably get this down to a 20 year mortgage just by cutting out all the other crap I spend money on 😂, let alone the wife.

by Zachary Smith | 13th Apr 23, 9:14am 1681334076

You have to wonder about some of those people who bought multiple properties during lockdown or have 20-30 properties. I just can't imagine they have piles of spare cash laying about to pay the higher mortgage rates, higher insurance, tax etc. After all their whole ethos was to use equity to purchase more properties and that equity is drying up while expenses shoot up.

by hamsterintheclouds | 13th Apr 23, 9:24am 1681334666

Yep, bought a rental during lockdown and can confirm it is hurting, and we were <60% LVR. I suspect we'll start seeing many more of these covid purchases coming on to the market as distressed sellers soon

by Nzdan | 13th Apr 23, 9:47am 1681336061

Our broker asked us if we were aware how much equity we had in our 1st place, suggested we could leverage into a rental property. He was a little surprised when I said yes and no thanks. I guess he's used to the lottery win excitement he usually gets from clients when he drops that little gem on them.

The bank now values our property 20% less than what we paid. However, we still have approx 25% equity because I didn't leverage up.

by Averageman | 13th Apr 23, 9:47am 1681336069

Indeed. Banks seem to be assessing value on properties as significantly less than Agents and Seller are. Interested to hear how banks are viewing declining equity and what they are measuring from others.

by Justa comment | 12th Apr 23, 7:52pm 1681285934

ANZ Serious Saver 4.25%. I predict BNZ Rapid Saver will be 4.35% by the end of the week lol

by ChrisOfNoFame | 13th Apr 23, 9:54am 1681336445

How long before the other majors follow?

ANZ knows that people don't change banks often, or at all, in a lifetime.

And the other majors certainly don't want to lose out on gouging their captive clients when they know that operating as an oligopoly is how to make off like bandits.

by Cheetahlegs66 | 13th Apr 23, 9:58am 1681336729

Any thoughts on where 12-months TDs will end up in 2023 from the big 4? Not interested in small finance companies or Heartland. I'm picking (hoping for 6.5%). Will I be disappointed?

by interesting1234 | 13th Apr 23, 10:24am 1681338255

False hope is still apparent, RBNZ will continue their hikes for another two quarters at least. Wondering if the next hike will be another shock higher than anticipated to try and again reiterate who is in charge to the banks. Floating above 8%, just waiting until fixed get to 8% and the investors start selling in droves after hanging on too long. It's hard to weather a storm when the walls fall down around you and the floor out from under you.

Plenty of people still needing to refix across the year and will get smashed by the implemented , and further hikes. Banks playing fast and loose with RBNZ as they feel things will improve sooner than later. We all know the recession is yet to hit, I'm thinking banking losses may be larger than they thought come 12 months time

by Averageman | 13th Apr 23, 11:31am 1681342280

Indeed. For the speculative it looks like a game of blind mans bluff, with blind (banks) leading the blind (specuvestor). As debt gets price correctly and DTI arrives you wouldnt want to be holding a lot of it.