ANZ responds with lower home loan rates, trims some TD rates too (2024)

Personal Finance/analysis

It looks like this is moving week for both home loan and term deposit rates, following the RBNZ MPS. ANZ the next to cut retail rates although the changes are not major

4th Mar 24, 8:46ambyDavid Chaston

ANZ has now found it can't not respond to its rivals having lower carded home loan rates, so it has made cuts of its own.

Like ASB's earlier moves there is some rival-matching going on.

But unlike ASB, it has gone lower on some key rates.

ANZ's now one year fixed rate is now market-leading among main banks at 7.24%, with a -5 bps advantage over the other four.

Its new two year rate now has a -6 bps advantage at 6.79%.

In contrast, ANZ seems prepared to offer marginally lower term deposit rates than its rivals, and has trimmed them for terms 1 year to three years today (Monday). However, to be fair, their new rates are really little-different to what is around from others, although their new 6.00% one year TD rate is the lowest for that term of all their rivals - except Westpac's 5.90% offer. But most activity goes on in shorter terms and ANZ made no changes to those and remains broadly in line.

Wholesale swap rates ticked lower after the dovish RBNZ moves.

Obviously you should negotiate and shop around. Most banks will discount their carded home loan rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's own product.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market. They will become important in a falling market however.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 4, 2024	%	%	%	%	%	%	%

ANZ	7.35	7.24 -0.15	6.89 -0.26	6.79 -0.10	6.65 -0.10	7.34	7.34
	7.39	7.29 -0.10	6.89 -0.26	6.85 -0.04	6.65	6.55	6.55
	7.39	7.29	6.99	6.85	6.65	6.55	6.55
	7.39	7.35		6.89	6.75	6.69	6.59
	7.39	7.29	6.95	6.89	6.65	6.59	6.39

Bank of China		7.09	6.99	6.89	6.79	6.69	6.59
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.39	7.29 -0.06	7.15	6.89	6.75	6.75	6.75
Heartland Bank		6.69	6.59	6.45	6.19
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.45	7.45	7.25	6.95	6.79	6.69	6.59
	7.39	7.39	7.19	6.75	6.75	6.79	6.79

Fixed mortgage rates

Select chart tabs

unweighted

Source: interest.co.nz

unweighted

Source: interest.co.nz

unweighted

Source: interest.co.nz

unweighted

Source: interest.co.nz

unweighted

Source: interest.co.nz

unweighted

Source: interest.co.nz

Daily swap rates

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Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Opening daily rate

Source: NZFMA

Comprehensive Home Loan Calculator

ASBANZBNZKiwibankTSBhome loansMortgagesborrowingInterest ratesSwap rates

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byimhenry|5th Mar 24, 7:13am1709575985

Those tax cuts are coming at the expense of other taxpayers. No free lunches

byJimboJones|4th Mar 24, 10:14am1709500460

They are a bit sad considering Orr has implied there will be a cut later this year. I took a much cheaper advertised 1 year rate 9 months ago and the OCR was the same.

byToye|4th Mar 24, 10:51am1709502674

No he has not. RBNZ charts show the first drop around Apr 25

byJimboJones|4th Mar 24, 12:40pm1709509240

Sure but we all know they have to push that date out otherwise the market will drop earlier. The market has priced in cuts this year based on their forecast.

byFlying high|4th Mar 24, 1:05pm1709510716

I remember a quote from my good friend Abe Lincoln you can't fool All of the people All of the time but can fool Some of the people All the time and All of the people Some of the time

Did that fool you?

byM0ralHazard|4th Mar 24, 9:27am1709497647

What are people getting for their floating rates at the moment? Are the banks knocking a bit off their advertised rates if you ask?

byRichardfromauckland|4th Mar 24, 10:17am1709500679

8.5 at KB for floating. But their 1 year rate was quoted at a pretty competitive 6.89.

byD-Back|4th Mar 24, 9:46am1709498809

Westpac are offering 6.99% on a 1-year through their app, and their 18 month and 2 year are slightly lower on there too when refixing.

bytyre_kicker|4th Mar 24, 10:20am1709500822

ANZ gave me 1 year at 6.89% on Friday

by1689 Baptist|4th Mar 24, 10:30am1709501449

Interesting that that is their new 18 month rate. I think the 18 month rate is their competitive 1 year rate they'll settle on but want to squeeze an extra 6 months out of their customers. That way they will cream it in 2025 when rates drop meaningfully.

byMerrydaze|4th Mar 24, 2:47pm1709516864

I got 6.99% from Westpac for 12 months plus $1600 cash back a few weeks back, equivalent of 6.7%

byToye|4th Mar 24, 12:13pm1709507604

Unless rates start dropping meaningful amounts this won't do anything.

2025 until proper drops.

byZwifter|4th Mar 24, 12:27pm1709508428

Define a "Proper Drop". OCR may only come down 50bps to 5.0% and that could be the "New Normal". The way the world is trending a rates rise has as much chance of happening as a rates fall, its hardly stable out there.

byJimboJones|4th Mar 24, 1:12pm1709511127

I actually hope that's what happens (as much as it isn't great for my mortgage). Any big drops would be because we are seriously in the poo.

by1689 Baptist|4th Mar 24, 10:25am1709501133

It looks like the 18 months fixed will become the new 1 year fixed as the most popular term. Banks are trying to squeeze an extra 6 months out of their customers at the high rate settings.

Negotiation tactic: Ask for the 18 month rate on a 1 year term at the very least.

byAudaxes|4th Mar 24, 10:27am1709501226

Lower interest rates are often seen as a positive for the market, but the truth is not much good happens when rates are going lower. Link

byAudaxes|4th Mar 24, 10:28am1709501299

This is what Milton Friedman called the interest rate fallacy, and it indeed refuses to die. We can tell what monetary conditions are in the real economy, as opposed to financial liquidity, though the two can be linked, by the general level of interest rates. When money is plentiful, interest rates will be high not low; and when money is restricted, interest rates will be low not high. The reason is as Wicksell described more than a century ago:
[The natural rate] is never high or low in itself, but only in relation to the profit which people can make with the money in their hands, and this, of course, varies. In good times, when trade is brisk, the rate of profit is high, and, what is of great consequence, is generally expected to remain high; in periods of depression it is low, and expected to remain low.
When nominal profits are expected to be robust, holders of money must be compensated for lending it out by higher interest rates. Thus, the same holds for inflationary circ*mstances, where nominal profits follow the rate of consumer prices. During the Great Inflation, interest rates weren’t low at all, they were through the roof well into double digits and higher by 1980. At the opposite end in the Great Depression, interest rates were low and stayed there because, as Wicksell wrote, the rate of profit was low and was expected to be low well into the future. High quality borrowers were given as much money as they could want while the rest of the economy was deprived of funds; liquidity and safety being the only preferences in what sounds entirely familiar. Link

bymikekirk29|4th Mar 24, 11:16am1709504204

Due to supply and transportation costs rising which wil bump inflation up in 3m, these rates will have to go up again

byFlying high|4th Mar 24, 12:08pm1709507306

Reliable commentary

byPeter M|4th Mar 24, 3:20pm1709518808

At this pace it will take several years before the 1 year mortgage rates will match the current 3 years rates.

byD-Back|5th Mar 24, 8:19am1709579962

Has anyone had much luck getting cash back on a top up to an existing mortgage?

I'm trying to negotiate with Westpac at the moment but I've been given a specialist who only responds through email and doesn't answer direct queries on rates, bit frustrating to be honest.

ANZ responds with lower home loan rates, trims some TD rates too (2024)

FAQs

Why do some banks offer lower mortgage rates? ›

The lender's overhead cost structure is a big factor in determining why mortgage rates differ by lender. Lenders who contain costs and keep their overhead low have the ability to offer better rates and/or closing costs.

Can I ask my bank to lower my mortgage interest rate? ›

If you have a good credit history and have been paying off your home loan over the past 10 years with no late repayments, you could be in a strong position to negotiate. Negotiate the rate with your lender and you may be surprised how quickly they can be persuaded to lower your interest rate.

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Can mortgage lenders offer different rates? ›

Mortgage rates vary from lender to lender and based on the type of loan. Fixed-rate mortgages have the same interest rate for their entire term, while adjustable-rate mortgages can raise (or lower) their rates after a certain period of time.

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Why do banks offer different interest rates for different loan lengths? ›

For each loan that it makes, a bank will assess the risk that a borrower does not repay their loan (that is, the credit risk). This will influence the revenue the bank expects to receive from a loan and, as a result, the lending rate it charges the borrower.

Do all banks offer the same mortgage rates? ›

In closing, mortgage rates CAN & DO vary significantly between mortgage lenders for several reasons.

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Who controls mortgage rates? ›

While “the Fed” can use levers to influence mortgage rates, it doesn't directly control them. Market forces form mortgage rates; the Fed no more controls rates than it does the stock market.

How to negotiate an interest rate reduction? ›

Here are four steps to help you secure a lower interest rate on a credit card you already have.

Call your card provider. ...
Don't settle if your request is denied. ...
Ask for a different benefit. ...
Request a temporary rate reduction.

Apr 22, 2024

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Who has the cheapest mortgage rates right now? ›

Best USDA mortgage rates

Home Point Financial, 4.19%
Freedom Mortgage, 4.21%
Flagstar Bank, 4.28%
Caliber Home Loans, 4.46%
U.S. Bank, 4.54%
AmeriHome Mortgage Company, 4.61%
Pennymac, 4.67%
NewRez, 4.68%

More items...

Jul 21, 2023

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Should you talk to multiple lenders? ›

Don't stop with just one lender! By exploring your options with multiple lenders, you get more information about your options and get a sense for which loan officers you might feel most comfortable working with. Call each lender to set up an appointment to meet with a loan officer.

Is it smart to shop around for a mortgage? ›

Mortgage rate shopping is well worth the effort, and it's something that any homebuyer can (and should) do. Comparing mortgage rates among at least two lenders can save you $600 per year, while shopping with four or more mortgage lenders can translate to $1,200 in annual savings, according to research from Freddie Mac.

What is considered a high interest rate on a loan? ›

A high-interest loan charges interest and fees that are higher than most other loans. Typically, a loan with an annual percentage rate, or APR, over 36% is considered a high-interest loan. If you need cash fast or have low credit, you may be offered a high-interest loan or feel like you don't have any other options.

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Will interest rates go down in 2024? ›

But until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025.

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Can banks charge any interest rate they want? ›

Usury laws set a limit on the amount of interest that can be charged on different kinds of loans. While most states have usury laws, national banks can charge the highest interest rate allowed in the bank's home state — not the cardholder's.

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Do big banks have lower mortgage rates? ›

Competitive rates.

Due to their large size, big banks often have more access to capital markets. This greater access can sometimes allow national banks to offer competitive interest rates and fees, which may be lower than what you can find at a local lender.

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Is a lower mortgage rate always better? ›

One of the most important things you can do when buying a new home is to sit down and look at the real numbers. The lowest interest rate doesn't always get you the best deal, so don't get too excited about an interest rate before you do the math.

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