Lenders have announced a raft of changes to their floating, fixed and variable interest rates in light of the official cash rate cut made on Thursday.
The Reserve Bank met expectations of most economists when it announced a cut to its official cash rate by 25 basis points to a record low of 2.5 per cent yesterday.
ASB has lowered its variable home loan and Orbit home loan rates by 0.25% from 6.00% p.a. to 5.75% p.a., effective December 16 for new customers and December 23 for existing customers.
BNZ has also dropped its interest rates taking 20 bps off its standard product from 5.99% to 5.79%; 10 bps off TotalMoney from 5.89% to 5.79%; and 14 bps off Rapid Repay from 5.99%to 5.85%.
BNZ Director of Retail and Marketing Craig Herbison said the drop in interest rates may be reaching a plateau and rounds off a ‘defining year’ for New Zealand home owners.
“The pace of change has been notable, not only for floating but fixed. We started 2015 with a one year fixed rate of 5.69%. BNZ made a bold call to cut our one year rate to 4.35% outside of OCR changes. This offered our customers some of the sharpest rates in a generation.”
Three more lenders had also cut rates the NZ Herald reported, with ANZ Bank reducing its floating home rate by 25 basis points to 5.74% and Westpac cutting its fixed and floating mortgage rates, axing 15 basis points off its 2 Year Special Fixed Rate to 4.24% and dropping its floating rates by 15 and 25 basis points to 5.85%.
Kiwibank has also joined in, dropping its variable, revolving and offset mortgage rates by 25 basis points to 5.65%.
ASB has lowered its variable home loan and Orbit home loan rates by 0.25% from 6.00% p.a. to 5.75% p.a., effective December 16 for new customers and December 23 for existing customers.
BNZ has also dropped its interest rates taking 20 bps off its standard product from 5.99% to 5.79%; 10 bps off TotalMoney from 5.89% to 5.79%; and 14 bps off Rapid Repay from 5.99%to 5.85%.
BNZ Director of Retail and Marketing Craig Herbison said the drop in interest rates may be reaching a plateau and rounds off a ‘defining year’ for New Zealand home owners.
“The pace of change has been notable, not only for floating but fixed. We started 2015 with a one year fixed rate of 5.69%. BNZ made a bold call to cut our one year rate to 4.35% outside of OCR changes. This offered our customers some of the sharpest rates in a generation.”
Three more lenders had also cut rates the NZ Herald reported, with ANZ Bank reducing its floating home rate by 25 basis points to 5.74% and Westpac cutting its fixed and floating mortgage rates, axing 15 basis points off its 2 Year Special Fixed Rate to 4.24% and dropping its floating rates by 15 and 25 basis points to 5.85%.
Kiwibank has also joined in, dropping its variable, revolving and offset mortgage rates by 25 basis points to 5.65%.
