ANZ drops 1-year mortgage rate by 24 basis points to 4.95% as part of new banking package

ANZ drops 1-year mortgage rate by 24 basis points to 4.95% as part of new banking package

ANZ New Zealand is offering a one-year fixed-term "special" home loan rate of 4.95% as it touts its "best ever" home loan offer.

The bank's 4.95% offer, compared with its standard 5.25% one-year rate, is available to borrowers with at least 20% equity in their property or a deposit of at least 20%.

Eligible borrowers must also have an ANZ Freedom account and an ANZ credit card.

The offer's effective from Saturday.

Packaged with the offer is $1,000 cash on new lending of more than $100,000, fee-free banking and a free ANZ Visa Debit card with the ANZ Freedom account and a credit card with no account fee for one year.

ANZ's 4.95% one-year rate matches one already on offer from BNZ. And TSB Bank is offering 4.95% for 15 months. 

See all advertised mortgage rates here.

Kerri Thompson, ANZ's managing director of retail banking, said ANZ’s home loan prize draw, where 10 home loan customers each month win back the value of their annual mortgage repayments, will continue until 30 September.

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
           
4.95% 5.45% 5.80% 6.10% 6.30%
ASB 5.19% 5.45% 5.75% 5.95% 6.25%
BNZ 4.95% 5.40% 5.80% 6.10% 6.30%
Kiwibank 5.25% 4.99% 5.65% 5.99% 5.99%
Westpac 5.19% 5.40% 5.90% 6.15% 6.25%
           
Co-op Bank 4.99% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 4.99% 4.99% 5.65%   5.99%
TSB 5.25% 5.30% 5.75% 6.10% 6.30%

TSB Bank still has a low rate Special 15 month offer of 4.95%.

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9 Comments

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Interest rates keep tracking down, down, down.
Where are the rate hikes we are supposed to be getting?  (predicted to be happening right now by the bank economists 12 months ago  [& the 12 months before that][ & the 12 months before that] [& the 12 months before that])
1 year Mortgage rates will be tracking at 4.5% by year end. Floating at 5.2% . Carded. 

You keep saying rates are tracking down and yet they are still at the 4.90-4.99% level.  Do you understand what it would take for fixed mortgage interest rates to move lower?  To get a 1 year mortgage rate of 4.50% it's going to require our 1 year swap rate to move 40bps lower - not out of the realms of possibility, but fairly unlikely at this stage. 
To get a floating rate of 5.20% the OCR will need to be cut by 50bps.  What is the basis of your thinking for these mortgage rate/wholesale rate decreases you keep talking about?

personally i think we'll see deflation and an ocr under 2%
regards

Mortgage Belt - where are the rates cuts that you've been forecasting ?
All that's happening is that the banks are playing around at the margin, literally with their margins, and in anticipation that their funding spreads will come down over time. Rates aren't getting cut and rates aren't coming down unless the NZD starts going through the roof (its falling by the way), and they're just washing around their lows.
 
 

Big margins. Greedy Banks. I'm not so sure.
Know someone who got 4.40% from BNZ for 12 month Term Deposit and see another lot (ANZ) is lending it out at 4.95%. 55bps margin.
Its a bit crazy or is real compedition or our banks know something the rest of us don't?
 
 
 
 

Money Man - they pay 4% for term deposits but lend that money out at 12% for personal loans and 19% for credit cards,
The BNZ & ANZ and others borrow hundreds of millions of money offshore from Japan and Europe at only 1.5% and lend that out on mortgages of 4.95%.
The banks are making more money off bigger margins than they ever have before!

I would suggest less then 10% of banking lending is at rates you quote so average rate is no where what you say. Bulk is in Residential mortgage lending.
Also Personal loan and Credit Cards are unsecured lending so loss's are built into margin.
My point was here are two banks one getting a deposit and other one pricing a loan with only 55bps difference so seems to say there is compedition in the banking sector.
I don't think the cost of funds are at 1.50% as you quote. That may be the wholesale rates in those countires but not the cost Banks get their funding out.
Even funding with Covered Bonds with lower deemed risk to offshore parties are not anywhere near what you say.
 
 

Big Blue, big call, wrong call, but please try explain to me your understanding of how a NZ bank can raise money (total cost of fnds) at 1.50%, or is it just a case of extreme nativity in that's you think theyre borrowing in foreign currency and bringing it back on an unhedged basis.

Big Blue, big call, wrong call, but please try explain to me your understanding of how a NZ bank can raise money (total cost of fnds) at 1.50%, or is it just a case of extreme nativity in that's you think theyre borrowing in foreign currency and bringing it back on an unhedged basis.