ANZ is cutting some of its fixed mortgage rates following the Reserve Bank's decision to lower the Official Cash Rate (OCR) last week.
The decrease in home loan rates includes a 40 basis point drop in its one-year special (for customers with a minimum 20% equity) rate to 6.45% and a 50 basis point drop to 5.99 in the 18-month special rate.
In today's announcement, ANZ also signalled it was cutting some term deposit rates as well.
On Wednesday last week, the Reserve Bank dropped the OCR by 25 basis points to 5.25%, prompting a flurry in mortgage rate cuts.
Last week ANZ reduced some floating rates.
"The Reserve Bank’s move, and the fall in wholesale interest rates as a result, gives us the chance to pass on these lower rates to customers,” ANZ NZ managing director for personal banking Grant Knuckey said.
He said the bank was "hopeful" it would provide relief to homeowners and first-time buyers looking to enter the housing market.
“It’s a really competitive environment right now, and this is the first time ANZ’s 18-month special rate has been below 6% since October 2022,” Mr Knuckey says.
“Many people have fixed their home loans on shorter terms in the past few years – meaning those borrowers will soon be in a position to take advantage of lower rates.”
The reduction in home loan rates and OCR also meant the bank decreased some term deposit rates between 10 and 40 basis points.
“We know that economic conditions in New Zealand remain challenging. We want to remind our customers to get in touch if they are feeling financial pressure."
The new rates will kick in tomorrow, August 20.
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