“It’s a really competitive environment right now and this is the first time ANZ’s 18-month special rate has been below 6% since October 2022.
“Many people have fixed their home loans on shorter terms in the past few years – meaning those borrowers will soon be in a position to take advantage of lower rates.”
ANZ will also cut some of its deposit rates between 10-40bps.
Last week, the Reserve Bank cut the official cash rate (OCR) by 25bps from 5.50% to 5.25%. It was the first time interest rates had been cut since 2020.
The country’s major banks moved swiftly in lowering mortgage lending rates after the Reserve Bank’s decision was released.
ANZ cut its floating and flexible home loan rates by 10bps to 8.39% and 8.50% respectively.
ASB reduced all of its fixed home-lending rates from between 10 and 34bps.
ASB’s one- and two-year home loan rates fell 26bps to 6.59% and 5.99% respectively.
Its six-month rate decreased 10bps to 6.89% and the 18-month term was lowered 34bps to 6.15%.
Kiwibank also lowered its home loan and business variable lending rates by 25bps.
The Reserve Bank said in its announcement last week that annual consumer price inflation was returning to within the Monetary Policy Committee’s 1% to 3% target band.
Its new forecast rate track suggests the OCR will fall from here to at least 5% by the end of the year and to at least 4.5% by June next year.
Smaller bank joins the fray
The Co-operative Bank today said it was bringing a leading one-year home loan rate into the market from tomorrow.
The bank’s one-year owner-occupied home loan rate - for those with a minimum 20% equity in the property - will drop 40bps from 6.79% to 6.39%. Its standard rate for the same term length also falls 40bps to 6.89%.
Its 18-month rates will be cut by 30bps to 6.19% (owner-occupied) and 6.69% (standard).
The Co-Operative Bank said it is also providing additional support for first-home buyers with an interest rate of 6.19% at one year along with 1% cash.