BNZ lowers fixed lending rates after Official Cash Rate cut

BNZ has dropped almost all of its fixed housing interest rates following the Reserve Bank’s Official Cash Rate cut.

The OCR was cut by 25 basis points (bps) from 3.25% to 3% last Wednesday.

This morning, BNZ said effective immediately it had dropped all its fixed mortgage lending rates except the six-month term.

The standard one-year, 18-month and two-year rates are all now 4.75%, the first two falling from 4.79% and the two year rate from 4.89%.

The three-year rate is also down 0.04 to 4.95%.

Both the four and five-year rates had larger drops of between 0.2 and 0.3% to settle at 5.09% for four years and 5.39% for five years.

The six-month term remains unchanged at 5.09%.

The bank dropped some of its variable home loan rates the day after last week’s OCR cut, with the standard variable rate to fall 15bps to 6.29% from tomorrow..

Its Total Money, Mortgage One and Rapid Repay variable rates would also be coming down 15bps to 6.39%.

Interest rates falling

The day after last Wednesday’s OCR cut also saw a number of the major banks drop their fixed and floating lending rates.

Westpac trimmed 4bps off its one-year, 18-month and three-year fixed-term special rates and 20bps off its two-year rate.

Its one-year, 18-month and two-year special rates were now 4.75% – a new low for the mortgage rate market.

Westpac, ANZ and Kiwibank also dropped their flexible and floating lending rates, but only by 20bps.

ANZ cut its floating mortgage rate and business flexible loan rate to 6.29%.

It also cut 25bps off its standard rate serious saver account, dropping it to 0.40%, and shaved 10bps off its online savings account and Pie (portfolio investment entity) fund.

“When reviewing interest rates, ANZ considers a range of factors, including the OCR, changes in wholesale interest rates and the need to balance the needs of borrowers and savers,” ANZ said.

Meanwhile, Kiwibank dropped its variable home loan rates by 20bps to 6.15% and its revolving loan to 6.30%.

The bank also cut its 90-day notice saver rate by 25bps to 2.85% and its 32-day notice saver rate to 2.3%.

Westpac’s 60-day term deposit was cut to 2.25%, down 15bps. Its 90-day rate is down to 3.40%, a drop of 5bps, and its four-month rate is 3.35%, down 10bps.