Banks pass on OCR reduction
Following the Reserve Bank’s recent 0.5% cut to the OCR, major banks BNZ, ANZ, and Westpac have announced significant rate reductions across their home loan and business products.
BNZ reduces variable home loan rates
BNZ has announced a 0.5% reduction in its variable home loan rates following the RBNZ’s OCR cut. Starting today, BNZ customers will benefit from this full rate reduction.
“We are continually assessing our interest rates and looking for opportunities to pass on rate reductions to our customers,” said James Leydon (pictured above left), BNZ’s general manager of home lending products.
This move is part of BNZ’s ongoing strategy to swiftly adjust to changes in market conditions.
ANZ passes OCR cut to business and home loan rates
ANZ New Zealand has followed suit, cutting interest rates by 50 basis points for its floating business loans, agribusiness loans, and floating home loan products.
Lorraine Mapu (pictured above centre), ANZ managing director for business and agri, highlighted the difficult economic environment.
“We hope this provides some relief to Kiwi farms and businesses that have been doing it tough,” Mapu said.
The bank’s floating home loan rates have been adjusted to 7.89% and 8%.
Additionally, savings rates such as the Serious Saver have been reduced, effective in late October and early November.
Westpac slashes both fixed and floating rates
Westpac NZ is also passing on the full 0.5% OCR reduction to floating home loan and business lending rates, while also cutting fixed home loan rates by 0.10%.
The “OCR announcement is good news for housing, business and agri borrowers,” said Sarah Hearn (pictured above right), Westpac NZ GM of product, sustainability, and marketing.
The bank has further reduced its serviceability rate to 8.15%, aimed at supporting home buyers while maintaining responsible lending practices.
