ANZ slashes fixed home loan rates - 'lowest ever offered by a major bank in NZ'

March 18, 2020
ANZ.

ANZ Bank has today announced cuts to its one- and two-year fixed home loan rates and term deposits.

It comes just days after the Reserve Bank cut the Official Cash Rate (OCR) to 0.25 per cent for the next 12 months amid the coronavirus outbreak.

ANZ said today it would cut its one-year fixed rate special by 40 basis points to 3.05 per cent and its two-year fixed rate special would cut by 30 basis points to 3.35 per cent.

Term deposits have been reduced 0.25% across the board.

The cuts take effect tomorrow.

“These new rates will provide some relief and support for customers during a difficult and uncertain time,” said Ben Kelleher, managing director of retail and business banking for ANZ NZ.

The new fixed home loan rates are believed to be the lowest ever offered by a major bank in New Zealand, the company said.

“While there are a range of factors in setting these rates, including the Reserve Bank of New Zealand’s emergency Official Cash Rate drop of 0.75% this week, we’ve been mindful to balance the needs of borrowers and savers,” Mr Kelleher said.

“For borrowers, every dollar counts, and lower interest rates will leave more in their pockets to help them through the disruption caused by Covid-19.

“At the same time, it’s important that bank deposits remain a viable option for savers who are looking for a low-risk investment with a reasonable rate of return.”

Mr Kelleher said domestic deposits were also vital to ensure banks had enough funding to support lending.

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