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ANZ launches record-low major bank rate

ANZ has slashed its fixed rate mortgages, launching the lowest ever one year rate offered by a major bank.

Wednesday, March 18th 2020, 4:12PM

The nation's biggest lender is the first bank to pass on fixed rate cuts to borrowers. Its one year special will fall to a market low of 3.05%, a fall of 40 basis points.

The 3.05% one year rate is the lowest ever offered to borrowers by a major bank.

 Its one year standard fixed rate drops to 3.55%, a cut of 30 basis points. 

ANZ's two year rates fall by 30 basis points.

Its two year special falls to 3.35%, a drop of 30 basis points. 

The rate is the fourth cheapest two year rate on the market, behind ICBC, China Construction Bank, and HSBC Premier.

ANZ's two year standard rate drops to 3.85%, down from 4.15%. 

All of the new rates come into effect on March 19. Take a look at the latest rates in the market here.

While ANZ's rates are the cheapest bank rates, they do not represent record lows in NZ. Heartland's digital one year mortgage is just 2.89%, while KiwiSaver provider Simplicity offers 2.95% to customers.

Yet ANZ is the first mover on fixed rates after the Reserve Bank's unprecedented 75 basis point OCR cut.

The central bank's move took the OCR to 0.25% in the wake of the coronavirus pandemic, uncharted territory for NZ lenders. 

Analysts believe lenders will only pass on minor rate cuts, due to their reliance on overseas funding, and downward pressure on term deposits. ANZ has cut its term deposit rates by 25 basis points.

Yet ANZ's move is likely to spark a new price war among its main competitors and domestic rivals. 

The bank's retail managing director Ben Kelleher said: “While there are a range of factors in setting these rates, including the Reserve Bank of New Zealand’s emergency official cash rate drop of 0.75% this week, we’ve been mindful to balance the needs of borrowers and savers. For borrowers, every dollar counts, and lower interest rates will leave more in their pockets to help them through the disruption caused by Covid-19.

“At the same time, it’s important that bank deposits remain a viable option for savers who are looking for a low-risk investment with a reasonable rate of return.”

 

Tags: ANZ Ben Kelleher fixed rate mortgages Lending Mortgage Rates mortgages

« House prices to fall for six months: ASBKiwibank cuts one year fixed rate »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.95 3.09 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora ▼4.43 ▼3.55 ▼3.85 ▼4.14
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 4.09 4.15 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 4.50 ▼3.49 ▼3.39 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 3.09 3.39 3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
TSB Bank 5.34 3.89 4.15 4.49
TSB Special 4.54 3.09 3.35 3.69
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.59 3.55 3.85 3.99

Last updated: 8 April 2020 8:55am

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