ANZ was the first bank to move after the OCR cut, with managing director Grant Knuckey saying it would be welcome news for borrowers.
“Lower interest rates are helping, and more and more customers are seeing the benefit of rate cuts.
“We’ve … [seen] people choosing to use lower interest rates to get themselves ahead by saving and paying down their loans faster where they can.”
ANZ cut its flexible and floating home loans by 40 basis points (bps). Its floating home loan rate will be 5.89% from next Tuesday and the flexible rate will be 6% from this Friday.
ANZ’s business flexible facility will be 5.89% from Friday. Business term loan base rates have also been cut by 40bps to sit at 4.15%.
“We’re committed to offering competitive rates and encourage customers to explore their options,” Knuckey said.
ANZ’s managing director for business and agriculture, Lorraine Mapu, said the Official Cash Rate (OCR) cut would be welcome news for customers in those sectors, most of whom were on floating rates.
“We continue to see an economy of contrasts. Regional areas, buoyed by strong farmgate returns and commodity prices, are more upbeat. But many urban businesses are still doing it tough,” Mapu said.
“For those on floating rates, this change will help boost cashflow and provide some debt relief.”
The rate-cutting merry-go-round was in full swing before the OCR announcement.
The five major banks lowered rates by as much as 40bps across short- and long-term loans.
ANZ, ASB, Westpac, BNZ and Kiwibank all dropped their one-year rates to 4.49%.
Kiwibank currently has the best six-month home loan rate at 4.85%, for those with minimum 20% equity, after cutting it by 20bps.
Meanwhile, rivals ANZ and BNZ trimmed their six-month rates by 10bps to 4.89%.
ANZ, ASB, Westpac and BNZ share the lowest two-year rates at 4.65%.
BNZ also cut its 18-month fixed term rate by 26bps to 4.49%, matching that of ASB and Westpac.
Westpac was the first bank to offer sub-5% special home loan rates on all terms from six months to five years.
Westpac New Zealand’s general manager of product, sustainability and marketing Sarah Hearn described the home loan market as “extremely competitive”.
The OCR has now fallen 300bps since August last year, when it was 5.25%.
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