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ANZ removes mortgage specials, raises fixed home loan rates across the board higher than wholesale rate increases

Property
ANZ removes mortgage specials, raises fixed home loan rates across the board higher than wholesale rate increases
17th Dec 13, 8:27am by David Chaston

(Corrected to fix error on 'special' rate.)

This morning, and effective immediately, ANZ has raised its fixed mortgage rates and withdrawn its 'specials'.

The rises apply to both sub 80% loan-to-value ratio (LVR) loans, and those above 80%.

Only fixed rates are being increased. Floating rates remain unchanged.

The 'one year fixed special' of 4.95% 4.85% introduced on November 22 has been withdrawn.

ANZ fixed rate changes Standard (<80%)   Low equity ( >80%)
  New change   New change
  % %   % %
           
6 mths 5.25 +0.30   5.75 +0.30
1 year 5.49 +0.64   5.99 +0.30
18 mths 5.85 +0.26   6.35 +0.26
2 years 6.29 +0.34   6.79 +0.34
3 years 6.65 +0.15   7.15 +0.15
4 years 6.99 +0.09   7.49 +0.09
5 years 7.20 +0.10   7.70 +0.10

These moves are fairly aggressive by New Zealand's largest home loan lender. They position ANZ as the most expensive in the market for almost all fixed terms.

Since ANZ's November 22 rate change, wholesale swap rates have moved up only 15 basis points in the one, two and three year space, and only 10 basis points for longer terms.

It is likely ANZ is just making a tactical move here to assess how others will react, and re-enter in early 2014 with high-publicity.

See all carded, or advertised, bank home loan rates here.

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.49% 5.85% 6.29% 6.65% 7.20%
ASB 4.95% 5.65% 5.59% 5.99% 6.99%
BNZ 4.95% 5.80% 5.95% 5.99% 6.99%
Kiwibank 5.25%   5.65% 6.40% 6.90%
Westpac 4.95% 5.75% 5.59% 5.99% 7.10%
           
Co-op Bank 4.99%   5.59% 5.99%  
HSBC 5.10%   5.65% 6.35% 6.99%
SBS / HBS 5.20% 5.45% 5.45% 5.99% 6.55%
TSB 4.95% 5.40% 5.85% 5.99% 7.00%

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Fixed mortgage rates

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Source: interest.co.nz
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16 Comments

by  Your Landlord  |  17th Dec 13, 11:52am 1387234328

Zany, I think for property investors this is good. 

Bank deposit yields are continuing to rise. So too will property yields.

 

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by  Your Landlord  |  17th Dec 13, 12:08pm 1387235329

The yield curve continues to steepen.

This is a positive sign for New Zealand's economy.

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by  Stephen Hulme  |  17th Dec 13, 12:19pm 1387235965

Always until the mythical OCR hikes materialise.

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by  gordon  |  17th Dec 13, 2:13pm 1387242822

Your Landlord you are dreaming. I can guarantee a lot of property owners who have bought property in recent times have not factored in the fact their interest rates on their home loans are going to 8 to 9%.  People want it now and just look at what the rates are when they buy their dream home. It is easy to forget we are on all time low emergency interest rates which cannot last forever and will most certainly go up quickly when the inflation figures come through from the projected growth. Batten down the hatches and have some money set aside for those increases.

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by  Your Landlord  |  17th Dec 13, 4:07pm 1387249673

No dreaming gordon. Wide awake.

I am an investor and as such am hedged against rising interest rates.

Agree with you when you say that interest rates "will almost certainly go up quickly when the inflation figures come through."

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by  PeakEverything  |  17th Dec 13, 4:53pm 1387252387

I wouldn't hold your breath for any serious inflation.  

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by  gordon  |  17th Dec 13, 2:13pm 1387242825

Your Landlord you are dreaming. I can guarantee a lot of property owners who have bought property in recent times have not factored in the fact their interest rates on their home loans are going to 8 to 9%.  People want it now and just look at what the rates are when they buy their dream home. It is easy to forget we are on all time low emergency interest rates which cannot last forever and will most certainly go up quickly when the inflation figures come through from the projected growth. Batten down the hatches and have some money set aside for those increases.

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by  Your Landlord  |  17th Dec 13, 4:10pm 1387249853

Sorry Zany but I could never give my money to someone else to invest. They will not take the care with it that I do.

I have not yet met a money manager working for a boss who knows more about managing my money than me. Of that I am sure.

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by  MikeM  |  17th Dec 13, 5:04pm 1387253047

Do tell all. Then we can be as good as you.

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by  Your Landlord  |  17th Dec 13, 9:57pm 1387270679

Would never think I am good MikeM.

But what I do know is that I take more care of my money than someone else would take care of my money.

What's more ... I would sooner take responsibility for my own future than give that responsibility to someone else. And then bitch and moan when they cock it up.

So hence I look after my own money.

 

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by  Your Landlord  |  18th Dec 13, 9:18am 1387311496

Zany I respect your views absolutely, but I just don't expect, or think someone (eg an employer or a tax payer) should subsidise my retirement savings by compulsory payments (to me or anyone else).

Enforced savings only takes money away from somewhere else where it was being saved. The net effect is no increase in savings, just savings in another way.

Higher interest rates add to the wealth of people with minimal debt.

I guess one of the key differences between us is you have property you want to develop. I have property I want to keep. Higher interest rates only increase my income over the long term so  I don't fear higher interest rates, merely see them as part of the on-going economic cycle and a different way to increase my wealth.

All the best in your property endeavours.

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by  Your Landlord  |  18th Dec 13, 11:16am 1387318599

Good on you. You seem very sensible and organised with your financial planning.

You certainly don't need compulsory superannuation :)

PS agree with you re the development on land you already own. Excellent activity. I do this too and it of course increases the yield from already-owned assets.

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by  Micks  |  17th Dec 13, 12:36pm 1387236968

Maybe ANZ are starting to raise interest rates in order to pay for the upcoming settlement on all the dodgy swaps they sold to farmers!

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by  Grant A  |  17th Dec 13, 9:10pm 1387267815

Maybe ANZ have achieved their market share objective and are now trying to get some of their margin back that cost them to achieve it. Just like any business really.

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by  boofta  |  18th Dec 13, 9:07am 1387310867

Unfortunately this is a sign of things to come - if you havent fixed already, move ya butts, or get it well and truely spanked in the New Year.

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by  boofta  |  18th Dec 13, 9:19am 1387311580

Indeed - On top of this our idiot Finance Minister Big Billy Boy English is saying watching this space "Mortgage Interest rates will go up"  When did he becpme thr Reserve Bank Governor. He needs a big kick up the Mahuta

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