ANZ offers 4.75% rate, exclusively for staff

ANZ is currently offering the most competitive advertised home loan rate on the market, a two-year fixed rate at 4.99%.

However, whispers of a potentially lower rate of 4.75% have sparked discussions among borrowers about the possibility of securing even better deals through negotiation.

Exclusive rates for ANZ staff

It turns out that the rumoured 4.75% rate is exclusively available to ANZ staff as part of the bank’s employee benefits package, RNZ reported.

“For example, ANZ staff are eligible for discounted home loan rates,” a spokesperson from ANZ said. “I can’t publicly discuss the details of staff remuneration packages, but there is currently a discounted two-year fixed rate available to ANZ customers as part of our staff benefits package.”

Industry insights on discounting practices

David Cunningham, chief executive of Squirrel, noted that while ANZ’s 4.99% rate is currently the best in the market, a staff discount of 0.2% is quite standard across the banking industry, RNZ reported.

“ANZ’s 4.99% rate was the best in the market and only just launched, so I would be surprised to hear about more discounting,” Cunningham said, acknowledging that such internal discounts are commonplace.

Economic influences on rate adjustments

The discussion around home loan rates comes at a time when the Reserve Bank has reduced the OCR by 50 basis points, with expectations of further cuts amounting to 25 basis points within the year.

Kelly Eckhold, Westpac’s chief economist, suggested that while short-term mortgage and floating rates might drop further as these OCR reductions materialise, “longer-term interest rates already fully reflect the OCR moving to the 3% to 3.25% area so it’s hard to see much further movement.”

Complementing this view, Jose George from Tella Home Loans noted that banks have already adjusted their mortgage rates in anticipation of the OCR cut, with little room left for further reductions.