ANZ and NBNZ slash floating rates, but raise fixed rates

www.MortgageRates.co.nz

Monday 12th October 2009

ANZ and National Bank have both made major changes to their home loan interest rates, dropping floating rates and raising all rates of terms of one year or more.

The biggest change is National dropping its floating rate 70 points to 5.75%, while ANZ left its standard variable rate unchanged.

However it has introduced what it calls a Simple Variable rate for mortgages with a loan-to-valuation ratio of less than 80%. This new rate is set at 5.69% versus the unchanged standard rate of 6.45%.

According to interest rate site www.mortgagerates.co.nz NBNZ now matches ASB and Bank Direct on floating rate terms and is 4 points lower than Kiwibank.

The only bank with a lower rate is BNZ which has pitched its Total Money rate at 5.59%.

ANZ and NBNZ have also reduced their revolving credit interest rates, but hiked fixed term rates of more than one year.

NBNZ's increases ranged from 30 to 50 basis points with the biggest changes being made to two year and 18 month rates respectively.

ANZ's changes are smaller being in the band of 30-45 points.

The bad news for borrowers is that the biggest changes are to the shorter term rates.

Check and compare all mortgage rates at www.mortgagerates.co.nz

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