“For borrowers, every dollar counts”
ANZ has cut its 1 and 2 year fixed rates for home loans and term deposits, becoming the first major bank to do so following RBNZ’s emergency OCR cut.
ANZ has cut its 1 year fixed rate special by 40 basis points to 3.05%, and its 2 year fixed rate special by 30 basis points to 3.35%. It is also dropping its standard rates for the same terms, with the rates being available from 19 March. Term deposits have been reduced by 0.25% across the board, except for 30 days.
Managing director detail and business banking Ben Kelleher says the rates may be the lowest ever offered by any major bank in New Zealand, and is hoping that they will provide “relief and support” for its customers during “a difficult and uncertain time.”
“While there are a range of factors in setting these rates, including the Reserve Bank of New Zealand’s emergency Official Cash Rate drop of 0.75% this week, we’ve been mindful to balance the needs of borrowers and savers,” Kelleher said.
“For borrowers, every dollar counts, and lower interest rates will leave more in their pockets to help them through the disruption caused by COVID-19.”
“At the same time, it’s important that bank deposits remain a viable option for savers who are looking for a low-risk investment with a reasonable rate of return,” he added.
ANZ also cut its floating home loan rate earlier this week, along with its floating and flexible business loans and business overdraft rates.
Every major bank has now cut its floating mortgage rates following the Reserve Bank’s OCR announcement, though ANZ is the first bank so far to have made a move on its fixed-term rates.
To qualify for the new special rates, customers need a minimum 20% equity and an ANZ transaction account with directly credited salary.
