ANZ slashes interest rate offer to 2.79%
Wednesday, 20 May 2020
ANZ will drop its one-year fixed home loan rate to 2.79 per cent a year, an historic low, and further reduce most other key home loan rates.
Mortgage rates have been dropping over the past month, as New Zealand's economy felt the impact of Covid-19.
The official cash rate is now 0.25 per cent and there are predictions it could slide below zero, pulling home loan rates below 2 per cent. The Reserve Bank has indicated it would like to see retail rates fall further.
ANZ's new rates will be available from May 21. Its current one-year offer is 2.99 per cent.
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Kiwibank and ASB dropped their rates to 2.99 per cent earlier in the month. TB has dropped its one-year rate to 2.89 per cent.
Ben Kelleher, ANZ managing director retail and business banking, said the rates reflected a 'new reality'.
Home loan customers were facing uncertain times and the bank was committed to keeping rates as low as possible, he said.
“Putting more money back in the pockets of customers will enable them to repay debt, or support the wider New Zealand economy as the country recovers from restrictions brought on by Covid-19.”
No decision had been made on how long the rate would be available, Kelleher said, but it would largely depend on market conditions.
Deposit rates would be reviewed at a later date.
“As always, we will be working hard to balance the needs to borrowers and savers in setting new deposit rates, although this is challenging in the current low-interest-rate environment,” Kelleher said.