ANZ and BNZ go to war on home loans

ANZ is dropping its two-year fixed home-loan rate to 7.2 per cent per annum from 7.35 per cent.

The move comes as rival BNZ promises to beat any two-year rate offered by its major rivals. BNZ's rate is 7.15 per cent.

ANZ said it would offer customers $500 towards legal fees and waive loan approval fees for customers taking out a loan of $50,000 or more.