ANZ cuts home loan rates, lowest rate in three years

ANZ has cut all of its home loan rates after the Official Cash Rate was reduced last week. Photo / Alex Burton

• ANZ cuts 18-month fixed rate special to three-year low of 4.89%.
• The largest cut was 20 basis points.
• ANZ cut all special and standard home loan rates.

ANZ has dropped all of its fixed home loan rates after the Reserve Bank (RBNZ) cut the Official Cash Rate (OCR) last week.

The bank’s 18-month fixed rate special was cut by 10 basis points (bps) to 4.89%, its lowest since April 2022.

The largest cuts were to its six-month special and standard terms, which fell 20bps to 5.29% and 5.89%, respectively.

ANZ also cut 20bps off its standard four and five-year home loan rates, and its special three-year term.

Its one-year special term drops 4bps to 4.95%.

ANZ managing director for personal banking Grant Knuckey said the changes would provide relief for customers taking on new home loans and for those who are due to refix.

“The vast majority of ANZ NZ customers are on fixed rates, and they’re seeing the benefits of the falling interest rate environment,” Knuckey said.

“For example, our one-year home loan special rate has fallen from 7.39% in March 2024 to 4.95% – that’s a drop of nearly 2.5%.

“For those who are considering locking in a fixed rate, this is something most customers can do themselves in GoMoney.”

ANZ also cut the majority of its term deposit interest rates by between 5 and 15bps.

Last week, ANZ responded to the OCR cut by reducing its floating home loan, floating business and savings rates.

Its floating and flexible home loan rates were cut by 20bps to 6.49% and 6.6%, respectively.

ANZ also cut its business floating rates by 25bps from 5.05% to 4.8%.

The OCR was cut by 25bps to 3.25% in a widely expected move by economists and financial markets.

The RBNZ also lowered its forecast rate track. It now projects an OCR of 2.85% by the end of the year, down from a 3.1% forecast in February.

That implies at least one more rate cut this year with mixed odds on a second.

ASB chief economist Nick Tuffley said he expected two more cuts to the OCR, which would take it to 2.75%.

“It is possible the RBNZ pauses along the way. Our forecast of July and August cuts doesn’t reflect that, but unfolding events can easily change the timing,” Tuffley said.