ANZ New Zealand has announced that it is dropping its one-year fixed home loan rate to 2.79% p.a, and is also cutting most of its other key home loan rates.’
In addition to the new one-year fixed rate, ANZ will offer fixed-rate specials on 18-month (3.05% p.a), 2-year (2.95% p.a) and 3-year (3.35% p.a) term loans. This move has been made following the Reserve Bank’s decision to keep the OCR at 0.25% until early 2021.
Read more: Reserve Bank keeps OCR at current level
The new rates will be available from 21 May, and will take fixed home loan rates “well beyond historic lows.”
“These new rates reflect a new reality where many home loan customers are facing uncertain times and our commitment to keeping rates as low as possible to help ease the pressure,” Ben Kelleher, ANZ Managing Director Retail and Business Banking 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.”
ANZ has not yet specified how long the rate will be available to customers, but says it will assess market conditions before committing to a decision.
Kelleher also noted that deposit rates will 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,” he stated.