ANZ has dropped most of its fixed mortgage rates, as well as some term deposit rates.
Starting today, all of the bank’s standard mortgage rates (for those with less than 20% equity) and most of its special rates were dropped, with one-year terms seeing the biggest cuts.
These both dropped by 0.16%, meaning the one-year special rate now stands at 6.19%, while the standard rate sits at 6.79%.
Other rates fell by 0.10%.
For special rates, the six-month rate now sits at 6.75%, 18-month at 5.89%, two years at 5.69%, and three years at 5.69%.
The standard six-month rate now stands at 7.35%, 18 months at 6.49%, two and three years at 6.29%, and four and five years at 6.19%.
Term deposit rates for investments above $10,000 between 180 days and five years also saw drops.
The smallest drop was for a five-year investment, which went down 0.05% (now at 4.30%), while the highest was for 270 days and 18 months, both dropping 0.15% to 5.20% and 4.65%, respectively.
The drop comes as Westpac today said it expected the Reserve Bank would cut the official cash rate by 50 basis points to 4.75% at its October 9 review. It also expected another 50 basis point cut to 4.25% in November.
“The projected step up in the pace of easing in October is a more finely balanced decision (perhaps a 60% probability), whereas the probability of a larger easing in November looks much higher,” the bank said.
ANZ’s drop also comes as new data from RealEstate.co.nz showed declining interest rates, easing inflation, the recent OCR cut, and a high level of housing stock was set to tilt the market towards favouring buyers