The cuts to 'special' rates come soon after similar moves by two other key competitors
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ANZ has made several cuts to its home loan rates, reducing five of its seven ‘special’ rates for fixed terms effective today. This comes one week following ASB’s slashing of rates for three of its fixed terms, and two weeks following HSBC’s announcement 18-month ‘special’ rate of 3.85%.
ANZ has brought its one year ‘special’ rate in line with ASB, reducing it by six basis points to 4.29%. The bank has also done the same for its two year fixed rate, reducing it by the same amount to 4.49%.
It has further reduced its three year ‘special’ rate by 14 basis points, putting it at 4.85% - still slightly above ASB’s offering of 4.79%, though still lower than the majority of three-year rates currently offered by other providers including BNZ, Westpac and Cooperative Bank.
ANZ’s four year rate has fallen by four basis points 5.85%, and its five year fixed rate by ten basis points to 5.99%. This remains on the higher side of the spectrum, but has brought ANZ’s longer term rates closer in line with its key competitors.
The bank’s most competitive rate is now the 4.29% one year fixed term, which is equal to those offered by ASB, the Cooperative Bank, SBS Bank and TSB. HSBC Premier remains the standout with its 3.85% 18-month ‘special.’
ANZ’s ‘special’ rates do come with certain requirements that other providers may not have. These include a minimum 20% equity, an ANZ transaction account with salary credited directly, and the customer must also hold one additional ANZ product.
Related stories:
ASB slashes home loan rates for three fixed terms
HSBC announces 'unrivalled' new home loan rate
