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BNZ and ANZ Cut Fixed Housing Loan Rates Following Official Cash Rate Changes
In response to last week’s changes to the official cash rate (OCR), BNZ and ANZ have announced significant cuts to their fixed housing loan rates, providing relief for homebuyers and property owners alike.
ANZ Reduces Rates on Fixed Home Loans
ANZ has lowered its six-month special fixed housing loan rate to 6.50%, down from 6.75%, and reduced its one-year special rate to 5.99%, a decrease from 6.19%. These changes reflect ANZ’s move to remain competitive in the housing loan market amidst shifting economic conditions.
BNZ Follows Suit with Rate Cuts
BNZ has also responded with rate reductions across several of its fixed-term housing loans. The new rates include:
- 6.49% for a six-month loan (down from 6.75%)
- 5.99% for a one-year loan (down from 6.19%)
- 5.69% for a two-year loan (down from 5.79%)
- 5.59% for both four-year and five-year loans (down from 5.69%)
The 18-month loan rate remains unchanged at 5.89%.
With these adjustments, BNZ and ANZ now join TSB as the only banks offering one-year rates below 6%, providing more options for homebuyers looking for better deals on their mortgage rates.
Effective Dates and Rate Structure Updates
These new rate cuts will take effect from October 15 for both BNZ and ANZ customers. In addition, BNZ recently announced a shift to a single set of fixed home loan rates, eliminating the previous 0.60% difference for customers with less than 20% equity. While the low-equity premiums still apply based on individual customer equity positions, this change simplifies the lending process.
Reserve Bank OCR Cut Prompts Mortgage Rate Adjustments
The rate reductions by BNZ and ANZ come after the Reserve Bank’s decision to lower the OCR by 50 basis points, bringing it to 4.75%. This has prompted a ripple effect across the banking sector, with TSB also cutting its one-year fixed rate to 5.99% last week.
ANZ Also Cuts Term Deposit Rates
In addition to mortgage rate cuts, ANZ announced reductions to its term deposit rates. The six-month term deposit rate dropped by 30 basis points to 5.25%, while the 12-month rate was lowered by 20 basis points to 4.80%. ANZ explained that these changes reflect a need to balance the impact of wholesale interest rate changes and the OCR while considering the needs of both borrowers and savers.
These changes in mortgage and deposit rates provide an opportunity for both homeowners and savers to reassess their financial options in light of evolving economic conditions.
SOURCE: 1NEWS