Major banks ASB and ANZ are cutting some home lending rates today.
Last week’s Official Cash Rate (OCR) decision and market responses to that have influenced today’s move.
ASB said the one-year lending rate has dropped 10 basis points from 7.39 per cent to 7.29 per cent, effective today.
And its two-year lending rate also dropped, from 6.89 per cent to 6.85 per cent.
The bank’s 6-month term deposit is going up by five basis points to 6.05 per cent.
Adam Boyd, ASB personal banking general manager, said the reduction to some mortgage terms partly reflected how swap rates responded to the Reserve Bank keeping the OCR at 5.50 per cent.
After the cash rate announcement last Wednesday, the two-year swap rate, which can influence home mortgage rates, dropped to 5.05 per cent from 5.21 per cent.
Inflation was also a factor in ASB’s home loan rates decision, Boyd said.
“We know that the rising cost of living is affecting our customers, and alleviating a bit of pressure will be welcome news for homeowners in the current environment.”
ASB already cut some of its home loan rates last week, just ahead of the OCR announcement.
The bank’s 18-month mortgage adjustment dropped 26 basis points to 6.89 per cent last Tuesday.
ANZ also made changes to some of its fixed home loan and term deposit rates.
It said this was to reflect the recent decrease in wholesale swap rates.
The 18-month lending rate had the biggest drop among ANZ offerings, down 26 basis points to 7.49 per cent for its standard rate and 6.89 per cent for its special rate.
The one-year fixed lending rate at ANZ dropped 15 basis points from 7.99 per cent to 7.84 per cent for its standard rate and 7.24 per cent for its special rate.
Home loan rates for two years and three years were both reduced by 10 basis points.
There was no change today to rates for ANZ’s 6 month, four year and five year terms.
Borrowers have to have minimum equity of 20 per cent and an ANZ transaction account with their salary going into it to qualify for the special rates.
One year term deposit rates have fallen at ANZ from 6.10 per cent to 6.00 per cent.
Rates for 18-month, two year and three year terms are also down by 0.10 per cent.
Those rates apply for term deposits with a minimum $10,000, and applicable to the first $5 million.
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