Banks lower floating mortgages to follow OCR cut
Banks have been quick to respond to the Reserve Bank’s official cash rate cut this morning.
The central bank lowered the official cash rate to 2.5% from 3.0% this morning in attempts to help lessen the economic impact of the Christchurch earthquake.
ASB Bank reduced its variable lending and on call savings account interest rates to 5.75%.
The new variable interest rate for home loans will be effective from March 11 for new borrowers and from April 4 for existing borrowers.
Last week ASB lowered its fixed home lending rates and also its term deposit and term fund interest rates to reflect changes in wholesale funding rates.
Westpac reduced reducing floating mortgage rates for retail and business customers by 0.5 points to 5.60% and and 6.24%.
The rates are effective from tomorrow for new customers and from Thursday, March 31 for existing customers.
Westpac reduced its Westpac fixed mortgage rates last week, meaning it now had fixed and floating rates below 6%.
Kiwibank has cut its floating interest rates by 0.50 percentage points to 5.65 percent. The cut is immediate for new customers and effective in two weeks for existing customers.
Kiwibank cut its fixed rates last week in anticipation of the change in the cash rate.
BNZ has reduced its floating mortgage rate by 0.5% to 5.59% and its six-month, fixed rate by 04.5% to 5.85%.
National Bank has cut its floating mortgage rate by 0.5% to 5.74% and fixed rate by 0.55% to 5.65 -- effective March 14 for new customers and March 29 for existing customers.
ANZ's floating rate has been reduced 0.46% to 5.74% and the fixed rate has been reduced 0.55% to 5.65% -- effective March 28.
HSBC has cut its floating home loan rate by 50 basis points effective from March 28.
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Comments and questions14
The greedy banks are still rorting the NZ public. Even the reduced rates are excessive and unacceptable.
Mortgage lending rates should now be under 5% which will still give these thieving baarrstaards 2 to 2.5% margin.
Lock in with the BNZ for five years at the bargain rate of 7.75%.... What are they on??!! Daylight robbery, pure and simple.
Ah some one has to screw you may as well be a bank at least they cant give you aids.
I think everyone should move to Kiwi bank im considering it as I'd rather NZ money stayed within the country than going to the Australian banking monster who as the two above state are ripping us off... left right and centre...
But lost of talk of selling it/part of last year is offputting. Id like to sign up with them too because they are the closest to our bank. What would happen to advertising campaign if sold off to os investors? Would be time for another campaign.
I understand that many point to the greedy banks, and yes they make plenty of money on fees and interest they charge.
But the simple truth is, the more you owe the banks and the less equity you have the more the banks will charge. This holds true for the entire money supply chain, and NZ borrowers owe HUGE money to the banks. We have borrowed and borrowed and borrowed.
Bigmills79 has a very good point, but just be clear that Kiwibank still has to get its funds from somewhere (mostly outside of NZ) and that interest cost leaves the country, its just the profits that stay in NZ.
When NZ Govt was conned into selling BNZ, it was a very sad day. Goldman Sachs I think convinced a gullible naive set of politicians that Banking was not a business to be in. What did we learn from this, never trust an adviser who makes money from you when you follow their advise.
To a minor degree but most of the money is actually just printed as people ask for it. It's called Fractional Reserve Banking and is actually the main cause as to why we need unsustainable growth.
Open question to ANZ National Bank.
Please explain why you have NOT dropped your floating rate by the full 0.5%. Your simple variable rate should have come down to 5.70% not 5.74%.
All the other banks have passed on the full 0.5% decrease in OCR today. Westpac are at 5.60%, Kiwibank are at 5.65%.
Given this OCR decrease has been directly linked to the Chch Earthquake don't you have a moral obligation to pass on the decrease in full?
In response. The ANZ floating rate prior to the OCR drop was 6.20. It has been decreased 0.46% to 5.74%. National rate was originally higher than ANZ's at 6.24%. This rate was decreased by 0.50 so both ANZ and National are now aligned at 5.74%.
Rates will be monitored over the next few weeks by ANZ New Zealand.
What is HSBC doing?
I've asked HSBC and been told they are cutting floating rates by 50 basis points from March 28.
Draco and Bigmills are correct. Watch "Monay as Debt" on youtube and see why you should switch to Kiwibank (or TSB)....the power to coin money belongs to the people.
Don't forget SBS (or the newly formed 'heartland' bank).
I'd actually remove Kiwibank from your list though given it's sucking money from the community and people rather than giving back like TSB or SBS.
Thanks Mr News Editor!
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