BNZ and ANZ have cut their fixed housing loan rates in wake of the changes announced to the official cash rate last week.
ANZ said in a statement they have cut the six-month special to 6.50% (down from 6.75%) and announced a cut to the one-year special rate, which is now at 5.99% (down from 6.19%).
Similarly, BNZ said its standard fixed housing rates were now 6.49% (down from 6.75%) for a six-month loan, 5.99% (down from 6.19%) for a one-year loan, 5.69% for a two-year loan (down from 5.79%) and 5.59% for both four-year and five-year loan, down from 5.69%.
The bank’s 18-month loan is unchanged at 5.89%.
This means BNZ and ANZ now join TSB as the only banks advertising one-year rates below 6%.
These rates changes are effective as of October 15 for both BNZ and ANZ.
In August, BNZ said it was moving to a single set of fixed home loan rates, instead of offering different rates to those with 20% equity to those without.
Previously there was a .60% difference in the rates.
Low equity premiums will still be applied based on the individual customers’ equity positions.
Last week, the Reserve Bank cut the official cash rate by 50 basis points, meaning it is now at 4.75%.
The doveish announcement sparked changes to home loan rates by the sector – with TSB announcing last week it was also cutting its one-year rate to 5.99%.
ANZ cuts term deposits
A cut to term deposit rates was also announced by ANZ this afternoon. This included the six-month rate, which dropped 30-basis points to 5.25% and the 12-month rate which fell 20-basis points to 4.80%.
ANZ said when reviewing interest rates, it considers a range of factors, including the OCR and changes in wholesale interest rates and the need to balance the needs of borrowers and savers.