ANZ, National banks cut mortgage rates

photo / supplied

Sister banks ANZ and National have cut one year, 18 month, two year and three year fixed-term interest rates following falls in wholesale interest rates and forecasts the Reserve Bank will cut the Official Cash Rate (OCR) following last week's devastating Christchurch earthquake.

ANZ and National Bank have cut their one-year fixed term home loans by 50 basis points to 5.95 per cent. That takes them below the variable, or floating, home loan rates on offer from all the major banks which are above 6 per cent.

The two have also cut their 18 month fixed rate by 26 basis points to 6.29 per cent, their two year fixed rate by 16 basis points to 6.49 per cent and three year home loan rate by 11 basis points to 6.99 per cent.

The ANZ and National mortgage rate cuts come after parent ANZ New Zealand recorded housing term lending growth of just NZ$6 million to NZ$53.89 billion in the three months to December.

"Wholesale interest rates have recorded decreases across all terms," the two banks said in statements.

"In addition markets are now forecasting a drop in the OCR, leading to lower interest rates generally. In response to lower wholesale rates, we are today announcing drops in our fixed rate home loan and term deposit rates."

The ANZ cut its five month term deposit rate by 50 basis points to 4.5 per cent, their six month rate by 25 basis points to 4.25 per cent, their nine month rate by 40 basis points to 4.6 per cent, one year rate by 50 basis points to 4.6 per cent, 18 month rate by 60 basis points to 4.8 per cent and two year by 50 basis points to 5 per cent.

National Bank cut its five month term deposit rate by 25 basis points to 4.25 per cent, six month rate by 50 basis points to 4.5 per cent, nine month by 40 basis points to 4.6 per cent, one year by 50 basis points to 4.6 per cent, 18 month by 60 basis points to 4.8 per cent and two year by 50 basis points to 5 per cent.

INTEREST.CO.NZ