New cuts make home loans cheaper
ANZ has reduced its fixed mortgage rates across several terms, effective yesterday.
Both standard and special rates have seen cuts, with the largest reductions applied to one-year terms.
ANZ’s one-year special rate has dropped to 6.19%, with the standard rate falling to 6.79%, while six-month, 18-month, two-year, and three-year fixed terms now range between 5.69% and 6.75%, 1News reported.
Term deposits also affected
In addition to mortgage rate cuts, ANZ also reduced its term deposit rates for investments of $10,000 or more. The cuts apply to terms from 180 days to five years.
The largest drop was 0.15% for 270-day and 18-month deposits, now offering 5.20% and 4.65%, respectively. The smallest reduction was for a five-year term deposit, now at 4.30%.
Westpac predicts larger OCR cuts
ANZ’s decision to lower rates comes as Westpac forecasts a 50-basis point reduction in the OCR by the Reserve Bank in its upcoming October review, bringing it down to 4.75%.
Westpac also expects another 50bps cut in November, pushing the OCR to 4.25%.
Market tilting towards buyers
New data from RealEstate.co.nz suggested that falling interest rates, easing inflation, and abundant housing stock are shifting the market in favour of buyers, 1News reported.
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