Three major banks make big mortgage cuts

Tuesday, 15 October 2024

The Reserve Bank has cut the Official Cash Rate by 50 basis points, dropping it to 4.75%. The move has triggered immediate interest rate reductions across major banks, giving homeowners a break ahead of the holiday season. Zane Small reports.

Almost a week on from the Official Cash Rate cut, mortgage rates are still dropping.

Effective today, BNZ has lowered its standard fixed six-month home loan rate by 26 basis points to 6.49%.

It’s one-year rate dropped 20bps from 6.19% to 5.99%. It’s two-year rate remained unchanged at 5.89%, while the two to five year rates all dropped 10bps.

Meanwhile, ANZ also announced it was dropping the rates on some of its short-term and special lending, with its six-month special fixed rate lowering 25bps to 6.50% and the six-month standard dropping to 7.10%.

Both one-year rates also fell 20bps to 5.99% and 6.59% respectively.

Kiwibank also dropped special and standard home loan fixed rates from six month to three year terms on Tuesday.

It’s two and three year special rates both dropped to 5.69%, while its two and three year special rates dropped to 6.59% and 6.49% respectively.

It comes after the OCR was lowered by 50bps to 4.75% last week. All major banks have now lowered mortgage rates to some degree following the change.

BNZ has lowered its standard fixed six-month home loan rate by 26 basis points to 6.49%.

Kiwibank dropped its rates in the day before the OCR change was announced - cutting its floating home loan rates by 50bps, from 8.25% to 7.75%.

Following the OCR cut Westpac immediately cut its fixed standard and special rates all by 10bps, while ASB dropped its variable home loan rate by 50bps from 8.39% to 7.89%, while its Orbit rate dropped from 8.49% to 7.99%. ASB’s changes come into effect from October 17 for new customers and October 24 for current customers.