Major banks are continuing to jockey for rate advantages following last week’s OCR cut, with BNZ and Westpac the latest to cut some fixed rates.
This morning, BNZ announced it had cut a number of its fixed rates, including its 18-month offering to 4.95%.
It was also offering 5.49% p.a. for six months, and 4.99% p.a. for one and two years.
Earlier this month, BNZ also said it was cutting a range of rates on its term deposits.
The new fixed rates are available from today for both new customers and existing customers who are eligible to refix.
This afternoon, Westpac also announced it was making changes to some fixed home loan and term investment rates, effective from tomorrow.
It was offering 4.99% on its one-year and 18-month advertised special fixed home loan terms, and 5.59% for six months.
Its three-year rate also dropped 0.20% to 5.19% p.a.
Its standard rates for those periods were also lowered, and the bank was also trimming its term investment rates by between 0.10% and 0.30% p.a. across all terms.
BNZ General Manager Home Lending James Leydon said the bank was offering customers “competitive rates” in response to diverse home loan needs.
“We know many of our customers are looking beyond the very short-term fixed rates as the interest rate environment evolves. By offering a market-leading 18-month option, we’re giving customers more choice and the ability to lock in a competitive rate for a longer period,” he said.
“At the same time, we continue to compete hard for those New Zealanders who prefer the flexibility of our 6-month and 1-year fixed rate options. With fixed rates reduced across multiple terms, we’re providing solutions that work for a wide range of borrowers.”
Westpac NZ’s head of consumer lending, Jo McGregor, said it was the first time the bank had offered a sub-5% p.a. 1-year advertised fixed home loan rate since September 2022.
“We’ve been consistently passing on interest rate falls and helping put more money in homeowners’ back pockets over the last nine months,” McGregor said.
Many of the major banks were quick to adjust floating home loan rates and rates for savers after the Reserve Bank reduced the Official Cash Rate by 25 basis points last week.
This week, many have been moving on fixed rates.
Earlier this week ANZ reduced its six-month rate by 40 basis points to 6.09%, and the one-year rate by 30 basis points to 5.59%. The bank’s 18-month rate was also been reduced by 20 basis points to 5.59%.
The six-month special rate was reduced 40 basis points to 5.49%, the one-year rate was reduced by 30 basis points to 4.99%, and the 18-month rate was reduced by 20 basis points, and is now also 4.99%.
The two, three, four and five year rates were left unchanged.
Kiwibank followed suit yesterday, dropping its standard six-month fixed rate by 16 basis points to 6.39%. Its special six-month fixed rate would also drop by 16 basis points to 5.49%.
Its one-year rates were also trimmed.
Both banks also cut term deposit rates.