Move aligns with other major banks
BNZ has announced reductions in its short-term fixed mortgage rates by five to 10 basis points, setting its six-month rate at 7.29%, one-year rate at 7.24%, 18-month rate at 6.89%, and two-year rate at 6.79%.
Concurrently, BNZ's one-year term deposit rate has been adjusted to 6%.
BNZ’s move follows similar actions by ASB and ANZ, which also revised their home lending rates after Westpac's rate cuts earlier in February, RNZ reported.
ASB’s one-year lending rate fell to 7.29%, and its two-year rate to 6.85%, alongside a slight increase in its six-month term deposit rate to 6.05%. ANZ, meanwhile, lowered its one-year fixed rate to 7.24% and set its two-year rate at 6.79%.
The banks’ rate adjustments reflect the response to the Reserve Bank holding the OCR at 5.5%.
“We know that the rising cost of living is affecting our customers, and alleviating a bit of pressure will be welcome news for homeowners in the current environment,” said Adam Boyd, ASB executive general manager of personal banking.
On Feb. 9, Westpac reduced its home loan rates, decreasing its special one-year fixed rate to 7.29% and its 18-month rate to 6.95%.
“While we are reducing our rates, we acknowledge that customers may be re-fixing their loans from the historically low rates we have seen over recent years and may still be concerned about their increasing costs,” said Sarah Hearn, Westpac NZ general manager of product, sustainability, and marketing.
“Our data shows the vast majority of our customers are coping well with higher living costs, but we encourage them to get in touch if they have any concerns.”
Westpac NZ reduced its term deposit rates by 10 to 30 basis points across all durations from 12 months to five years, RNZ reported.
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