New Zealand’s largest bank has cut home loan rates, ahead of quarterly inflation figures being released today.
The standard rate six-month fixed-term home loan at the bank has been reduced by 25 basis points to 6.59% per annum. The special rate was now 5.99%.
The standard rate for a one-year fixed-term home loan has been reduced by 22 basis points to 6.17% per annum. The special rate is now 5.57%.
The standard rate for 18-month and two-year fixed-term home loans were also reduced by 20 and 15 basis points respectively, to 5.99% and 6.04% per annum.
The special equivalent of these rates was reduced by 20 and 15 basis points, down to 5.39% and 5.44% per annum.
All changes were effective from today.
There was no changes to the standard rate for three, four or five-year terms, or the three-year special rate.
Special rates were available to customers with a minimum of 20% equity and an ANZ transaction account with salary direct credited.
Meanwhile, interest on term deposits were also reduced at ANZ.
Term deposit interest rates for the 150 day, 210 day, 240 day, 270 day and one-year were each reduced by 20 basis points.
Meanwhile, the rates for 180-day, 18-month and two-year were each reduced by 25, 15 and 10 basis points respectively.
There were no changes to interest rates for other term deposit periods. A term deposit required an investment of at least $10,000.
Statistics NZ would release its latest consumers price index (CPI) data for the December quarter of 2024 today. The CPI was a measure of inflation for New Zealand households.
Annual CPI up to the September quarter of 2024 was at 2.2% and some economists were predicting 2024 ended with an inflation figure closer to 2%.
ANZ general manager of banking products Hennie Burger said the cuts to interest rates will be welcome news for customers looking to move on to a fixed rate, or who are due to refinance their home loans.
“We’ll always endeavour to provide the best rates for our customers. As people navigate the changing interest rate environment we encourage our home loan customers to ensure they have the best loan for their financial situation.”
Burger added when reviewing the changes to interest rates, the bank considered a range of factors, including the Official Cash Rate and changes in wholesale interest rates and the need to balance the needs of borrowers and savers.