Sliding wholesale rates have opened the gate for New Zealand's largest home loan lender to drop its key one year fixed rate in a 'special' offer. Standard rates rise however

ANZ has changed its website to reflect two home loan rate changes. (Unusually, we have not received any direct notice from the bank yet.)

Their carded fixed two year rate has moved up to 4.79%, a +4 bps rise that puts it in line with all its main rivals.

But it has gone against the grain with its change to its one year ‘special’.

This has been reduced by -6 bps to 4.39% and that rate beats all its main rivals – in fact, it beats all banks except for the HSBC Premier offer.

At the same time, ANZ has raised its standard rates for both terms. The one year standard rate has been pushed +14 bps higher to 4.89%. Their two year standard rate is +4 bps higher to 5.29%. Both these standard rates are now +50 bps above their ‘special’ rates.

ANZ ‘special’ rates come with the conditions of a minimum 20% equity in the property transaction, and require an ANZ transaction account with salary direct credited, plus ANZ require you to take at least one other product, such as their white-labeled Vero insurance policy, as an example. Their ‘special’ rates are not available with package discounts. Otherwise, their standard rate applies.

The change today, especially for the one year rate, has been helped by soft, even falling, wholesale swap rates. Over the past three weeks, one year swap rates have fallen by -5 bps (from 2.15% to 2.10%). Two year swp rates have also fallen by -5% (from 2.40% to 2.35%).

ANZ last changed rates on January 19, 2017. At that time they also increased term deposit rates, although today no equivalent term deposit rate change has been announced.

Today’s changes alter who has the leading carded rates for mortgage borrowers. HSBC Premier has the market leading position for all terms at this time. Other than HSBC Premier, ANZ now has the lowest rate for one year, the Co-operative Bank has the next lowest 18 month rate, and TSB Bank has the next lowest rates for all terms 2 to 5 years.

See all banks’ carded, or advertised, home loan rates here.

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.39 5.05 4.79 5.49 5.70 5.85
ASB 4.59 4.75 4.79 5.09 5.49 5.69
4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.45   4.79 5.25 5.65 5.85
Westpac 4.59 5.05 4.79 5.09 5.69 5.49
             
4.55 4.70 4.85 5.25 5.55 5.75
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.45 4.75 4.75 5.09 5.45 5.69
4.45 4.75 4.65 4.99 5.40 5.45

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

TSB Bank has a ten year fixed rate of 5.75%.