Banks bring down rates in NZ
(30 January 2012 – New Zealand) The Reserve Bank of New Zealand (RBNZ) held its official cash rate at a low 2.5 percent last week, with at least two major banks dropping their fixed mortgage rates.
ABS cut up to 20 basis points from its fixed mortgage rate forcing ANZ/National Bank and TSB Bank to follow suit.
'Given the interest rate outlook following the RBNZ rate announcement, we think it is important that customers have competitive options to consider between floating and fixed rates,' said ASB lending general manager Mike Davy.
The most significant ASB cuts were made to three, four and five year fixed terms, all of which dropped 20 basis points to 6.1 percent, 6.5 percent and 6.9 percent respectively.
ANZ/National Bank was the first to move last week when it cut its short-term rates of between 9 and 30 basis points.
TSB Bank has cut several rates effective today. Its two year rate has dropped 10 basis points to 5.78 percent, narrowly squeezing out ANZ/National Bank which is offering 5.79 percent.
Kiwibank spokesman Bruce Thompson said it would 'certainly' look to match the shorter term 18 month and two year rates soon.
"We would expect that we too will make some adjustments in the next few days.'
The longer term rates are dominated by ASB and Kiwibank, who offer the cheapest deals for four and five year fixed terms.
Kiwibank also gets a mention for its special four year 5.99 percent rate, which is conditional on mortgage holders having at least 30 percent equity.
'Given the interest rate outlook following the RBNZ rate announcement, we think it is important that customers have competitive options to consider between floating and fixed rates,' said ASB lending general manager Mike Davy.
The most significant ASB cuts were made to three, four and five year fixed terms, all of which dropped 20 basis points to 6.1 percent, 6.5 percent and 6.9 percent respectively.
ANZ/National Bank was the first to move last week when it cut its short-term rates of between 9 and 30 basis points.
TSB Bank has cut several rates effective today. Its two year rate has dropped 10 basis points to 5.78 percent, narrowly squeezing out ANZ/National Bank which is offering 5.79 percent.
Kiwibank spokesman Bruce Thompson said it would 'certainly' look to match the shorter term 18 month and two year rates soon.
"We would expect that we too will make some adjustments in the next few days.'
The longer term rates are dominated by ASB and Kiwibank, who offer the cheapest deals for four and five year fixed terms.
Kiwibank also gets a mention for its special four year 5.99 percent rate, which is conditional on mortgage holders having at least 30 percent equity.
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