BNZ cuts home loan fixed rates

The BNZ changes affect one year, 18-month, and two year fixed rates. Photo / Alex Burton

BNZ is cutting some of its home loan rates shortly after other banks did the same.

The changes affect one year, 18 month, and two year fixed rates.

The one year rate drops from 5.79% to 5.59%.

The BNZ 18-month fixed rate reduces from 5.59% to 5.39%.

And the two year rate is changing from 5.59% to 5.29%.

BNZ said the changes were effective today.

It said the relevant rates were for home loans, including its residential owner-occupied and residential investor categories.

Last week, Westpac cut its six-month home loan rate to 5.99%.

It also cut some term deposit rates from five to nine months by 0.10% to 0.15% per annum.

Yesterday, ANZ said it was trimming its mortgage rates to match more attractive rates offered by some of its competitors.

ANZ also cut some of its term deposit and PIE fund rates to pay for the cuts.

ANZ lowered its six-month standard and special fixed mortgage rates by 25 basis points, its one-year rates by 22bps, 18-month rates by 20bps and two-year rates by 15bps.

And ASB last Friday announced it was cutting several interest rates to better align with, if not out-do, some of its competitors.

Some economists expect Stats NZ data due today will show the annual inflation rate remained at 2.2% in the December quarter, if it didn’t inch down to 2.1% - the level forecast by the Reserve Bank in November.

The Reserve Bank’s next decision on the Official Cash Rate is expected on February 19.