ANZ cuts home loan and business interest rates

ANZ is also making changes to its business lending. Photo / Doug Sherring

ANZ has cut its business lending, floating and fixed home loan interest rates.

It’s the second time the bank has lowered some of its mortgage rates this month.

Two weeks ago ANZ cut all of its standard fixed terms from six months to five years.

And from tomorrow, its three-year special fixed rate will drop 36 basis points (bps) to 5.99%.

Special rates are available to customers with a minimum of 20% equity.

The floating variable home loan rate will fall 15bps to 8.49%.

The business floating and business overdraft base interest rate will also drop 15bps.

Lorraine Mapu, ANZ New Zealand managing director for business and agri, said most business and agri customers tended to be on floating rates so decreases would flow through relatively quickly.

“For many of our business and farming customers the environment remains really challenging out there. The New Zealand economy is still doing it tough and global markets remain volatile,” Mapu said.

“But, following the Reserve Bank of New Zealand’s July Official Cash Rate announcement, we’ve seen a drop in wholesale rates so we’re able to pass on further savings to our customers.”

The last month has seen all the major banks make cuts to their home loan rates – some twice.

Grant Knuckey, ANZ NZ managing director for personal banking, said a quarter of all market activity in June was driven by customers switching banks as people took advantage of the competitive market.

“In recent years people have typically fixed their home loans on shorter terms. That means many will soon be in a position to take advantage of the lower rates,” Knuckey said.

ANZ also decreased savings rates by 15bps and term deposit rates between 10-30bps for terms one year and longer.