Mortgages: ANZ announces more home loan, term deposit rate cuts

ANZ is cutting its fixed home loan and term deposit rates again. Photo / 123rf

ANZ is cutting more fixed home loan and term deposit rates, the bank announced today.

From tomorrow, ANZ’s one-year fixed rate will drop 10 basis points (bps) to 6.35% (special) and 6.95% (standard).

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

The largest changes are to its longer-term standard fixed rates, which will result in the four and five-year terms both dropping 45bps to 6.29%.

ANZ’s two-year rate falls 20bps to 6.39% (standard) and 5.79% (special).

ANZ said it considered a range of factors when reviewing interest rates, including the Official Cash Rate, wholesale rates and the need to balance the interests of borrowers and savers.

The bank is also cutting interest rates by 10-15bps for its term deposits from 180 days to five years.

ANZ’s 180-day term deposit option now sits at 5.65%. Its one-year and two-year rates will drop to 5.1% and 4.55% respectively.

The Reserve Bank’s new forecast rate track suggests the OCR, currently 5.25%, will fall to at least 5% by the end of the year and to at least 4.5% by June next year.

The bank makes its next OCR decision on October 9.