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.
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.
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%.