Longer term home loan rates start dropping

www.goodreturns.co.nz

Wednesday 14th January 2009

Mainstream banks are starting to lower longer term fixed home loan rates. Westpac was the first to move last week and ANZ National has now followed suit. ANZ National has lowered rates for both its banks today with falls of 10 to 89 basis points for rates of more than two years maturity. The shorter term rates are down the smallest amount, just 20 basis points for both ANZ and National, three year rates are down 45 and 10 points respectively, while the biggest cuts have been reserved for five year rates. ANZ is down 89 points to 7.10% and National down 60 points to 7.10%.

The falls are driven by yesterday's economic news, followed by strong predictions that the Reserve Bank will make significant rate cuts on January 29.

Some are suggesting the OCR may fall as much as 100 basis points.

For more information on what is happening read this week's Home Loan report here.

Click here to view our rates table in full and click here to graph comparisons.

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