PHOTO: Mortgage Rates. FILE
BNZ has joined the recent trend among banks by reducing its rates for two and three-year home loans. On Thursday, the bank announced a decrease in its special two-year rate from 7.05 percent to 6.89 percent and its three-year rate from 6.85 percent to 6.79 percent.
Simultaneously, the standard two-year rate experienced a drop from 7.65 percent to 7.49 percent, and the three-year rate declined from 7.45 percent to 7.39 percent. This move follows ANZ’s earlier reduction in rates for two and three-year terms earlier in the week.
ANZ, earlier in the week, cut its two-year rate to a special rate of 6.89 percent and the three-year rate to 6.75 percent on Tuesday.
Additionally, BNZ increased its one-year home loan rate from 7.19 percent to 7.25 percent for borrowers with at least 20 percent equity.
In the broader market, Kiwibank’s two-year special rate is 7.05 percent, with a three-year rate of 6.89 percent. ASB’s two-year special rate matches this, while its three-year rate is 6.85 percent. TSB’s two-year special rate is 7.09 percent, and its three-year rate is also 6.85 percent.
RECESSION: One in every 100 home loans (1.29%) is in MORTGAGE arrears
The reduction in wholesale rates this month has not been fully reflected in bank rates, with economists suggesting that banks are cautious due to the Reserve Bank of New Zealand’s grim economic outlook. Independent economist Tony Alexander noted earlier in the week that banks might be delaying significant rate drops as the RBNZ has indicated a preference for more stable mortgage rates. This cautious approach aligns with the central bank’s efforts to address New Zealand’s persistently high inflation through maintaining relatively high interest rates.