New Zealand's largest home loan lender chooses to compete hard at the short end of the mortgage market, leaving most of its rivals battling for borrowers interested in low rates at longer terms

New Zealand's largest home loan lender chooses to compete hard at the short end of the mortgage market, leaving most of its rivals battling for borrowers interested in low rates at longer terms
ANZ goes in low and hard with a market leading one year 'special'

ANZ has now moved its mortgage rates lower, going in low and hard with its one year fixed rate offer.

And it is pitched at a market leading level.

Its new one year rate is 3.95%, lower than all its rivals. This rate is a 'special', meaning a minimum of 20% equity is needed, plus having an ANZ transaction account with salary direct credited.

And it also means TSB is matching that rate under its price match promise campaign.

As well, ANZ is trimming its three, four and five year fixed rates.

Its three year fixed rate is a 'special', now pitched at 4.19%, a cut of -30 basis points. But it is still higher than the 3.95% available at ASB, BNZ and Westpac.

Its new four year rate is 4.85% as a standard rate, involving a cut of -70 bps. Despite that, it is still a whole +50 bps higher than the offers at ASB and Westpac which are market leading.

And for five years fixed, the new ANZ rate is 4.95%, down -74 bps but +50 bps higher than ASB and Westpac and +66 bps higher than Kiwibank's market-leading rate.

ANZ's 3.95% one year rate is matched ASB, BNZ,Westpac and TSB for a much longer three year term.

This variation means that there has opened up quite a wide spread of rates between banks, making the options very competitive. Shopping around can bring substantial savings if carded rates are any indication. Borrowers with good financials will obviously be able to get some institutions to offer them even finer rates.

The flurry of recent rate changes in this market are coming just as the Autumn home selling season is winding down.

At the same time, ANZ has cut its term deposit offer rates sharply by up to -20 bps for some terms and flattening their offers. We will have more on these changes separately.

See all banks' carded, or advertised, home loan interest rates here.

Here is the full snapshot of the advertised 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 April 9, 2019 % % % % % % %
               
ANZ 4.99 3.95 4.19 3.99 4.19 4.85 4.95
ASB 4.95 4.09 4.19 3.99 3.95 4.35 4.45
4.99 4.05 4.79 3.99 3.95 5.19 5.39
Kiwibank 4.99 4.05   3.99 4.49 4.99 4.29
Westpac 4.99 4.05 4.09 3.99 3.95 4.35 4.45
               
3.99 3.99 4.09 4.15 4.35 4.59 4.69
China Construction Bank 5.15 5.10   3.65 3.90    
ICBC 4.85 3.99 4.19 3.99 4.49 4.95 4.99
HSBC 4.85 3.99 3.99 3.69 4.39 4.89 4.95
HSBC 4.99 4.05 4.25 3.99 4.49 4.99 5.09
 with price match promise 4.85 3.95 4.09 3.99 3.95 4.35 4.45

In addition to the above table, BNZ has a fixed seven year rate of 5.95%.

Fixed mortgage rates

Select chart tabs »

The '6 months %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted
The '1 year %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted
The '2 years %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted
The '3 years %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted
The '4 years %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted
The '5 years %' chart will be drawn here.
Loading...
fixed rate 
floating rate
unweighted

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?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

6 Comments

The longer you wait, the lower the rate!

TTP

FHB lambs to the slaughter, but business is business.

Wonder what Yvil thinks?

Fix for 1 year, rates are much more likely to go down than up. I have done that for the last 3 years and it has paid off handsomely

Since Co-Op bank are already offering 3.99% for 6 months (far lower than all the main banks for that term) and 3.99% for 1 year, and all of the main banks have offered a 3.99% rate for 1 or 2 years within the last 3 months, I don't really think the breathless reporting in this article is warranted.

Maybe if they were offering 3.90% or 3.85% carded.

Hi David, Shopping around can bring substantial losses if you are exiting your bank within a short time of settling your loan in terms of penalties and fees. Further, if you switch banks within three years, this signals risks to future potential bank relationships, clearly evidenced on your shiny new credit report. Banks become very wary of rate hoppers and those who escort them for a fast buck.