ANZ Offers Competitive One-Year Fixed Rate and Reduces Term Deposit Rates

Date Published: 4 March 2024

Key Facts

• ANZ has lowered its home loan rates in response to competitors offering lower rates.
• The bank’s one-year fixed rate, now sitting at 7.24%, is currently the lowest on the market among major banks.
• ANZ’s two-year rate has a -6 base point advantage at 6.79%.
• The bank has also slightly reduced its term deposit rates for terms of one to three years.
• ANZ’s new one-year term deposit rate, 6.00%, is the lowest among its competitors except for Westpac’s 5.90%.
• ANZ’s changes have occurred in the context of lower wholesale swap rates following ‘dovish’ moves by the Reserve Bank of New Zealand (RBNZ).

Article Summary

ANZ Bank has cut its home loan rates, now offering the lowest one-year fixed rate among the leading banks at 7.24%, a -5bps advantage over other banks. The two-year loan rate stands at 6.79%, marking a -6bps advantage. This move comes as a response to the bank’s competitors offering lower carded home loan rates.

Alongside this change, ANZ has trimmed its term deposit rates for periods ranging from one to three years. Despite being marginally less than the competition, the new rates don’t significantly deviate from those offered by other banks. Notably, ANZ’s one-year term deposit rate of 6.00% is the lowest among its rivals, barring Westpac’s 5.90% offer.

The bank’s decisions correlate with the fall in wholesale swap rates after the RBNZ’s dovish moves. Its actions underpin the adage that shoppers should negotiate and shop around, as most banks may lower their home loan rates if presented with strong financials. As such, brokers can be a useful resource for those uncomfortable with negotiations, albeit it’s crucial to note that some brokers have limited suggestions confined to their approved lending panel.

These changing home loan rates can be better understood by utilizing mortgage calculators or assessing term deposit rates via similar calculators. For mortgage holders not looking for a renewal at this time, a break fee calculator can help evaluate options, although break fees will be insignificant with increasing market stakes. They will play a crucial role if the market trend is downward.

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