PHOTO: 📉 ANZ Drops Rates to Lowest in Over 3 Years. FILE
In a bold move that could shake up the entire mortgage market, ANZ — New Zealand’s largest bank — has slashed its one-year fixed home loan special by 16 basis points to just 4.79%, marking its lowest point since June 2022.
Competitors are still sitting at 4.89% for the same term, but industry insiders are tipping a domino effect within days.
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🔍 New ANZ Home Loan & Term Deposit Rates
-
🏠 1-Year Fixed Special: 4.79% (down from 4.95%)
-
📆 6-Month Fixed Special: 5.14%
-
🗓 2-Year Fixed Special: 4.89%
-
💰 Term Deposits: Down 10–15 basis points
💬 ANZ’s Take: Relief for Borrowers in Tough Times
Grant Knuckey, ANZ’s Managing Director for Personal Banking, says the cut will help Kiwis either taking on a new home loan or refixing amid a challenging economy.
“These cuts provide another opportunity for borrowers not already on fixed rates to take advantage of the falling interest rate environment,” Knuckey said.
While borrowers rejoice, savers are feeling the pinch, with deposit rates nudging lower.
📊 Market Experts Predict a Chain Reaction
Brad Olsen, Chief Executive of Infometrics, expects other major banks to follow suit within the week, calling ANZ’s move a “first-mover advantage.”
He suggests the rate drop is a pre-emptive strike ahead of next week’s Reserve Bank OCR decision.
“These new rates from ANZ all look to be market-leading right now. Other banks will likely move to stay competitive,” Olsen explained.
🏦 OCR Cuts on the Horizon?
Markets are currently pricing in a 90%+ probability that the OCR will be cut to 3% next week, with expectations it could fall further to 2.75% by mid-2026.
Olsen warns, however, that mortgage rate movements aren’t a simple copy-paste from OCR cuts:
-
🏦 Current OCR levels
-
📉 Expected future rate paths
-
📊 Market risks
-
💼 Competition among lenders
All play a part in setting mortgage rates.
📌 The Big Picture: What It Means for You
✅ Homeowners & First-Home Buyers → Lower repayments could mean thousands saved over the life of your loan.
✅ Investors → Cheaper borrowing costs may spark fresh interest in the property market.
❌ Savers → Expect smaller returns on term deposits.
📢 Bottom Line
ANZ’s aggressive rate cut could trigger a mortgage price war in New Zealand. The next OCR announcement will be the one to watch — and for borrowers, now might be the time to lock in a deal.
🏦💥 Shock Move in NZ Banking: ANZ Slashes Home Loan Rates — Other Banks Expected to Follow
📅 Date: August 11, 2025 | ✍ Author: Susan Edmunds (RNZ) | ⏱ Reading Time: 3 mins
📉 ANZ Drops Rates to Lowest in Over 3 Years
In a bold move that could shake up the entire mortgage market, ANZ — New Zealand’s largest bank — has slashed its one-year fixed home loan special by 16 basis points to just 4.79%, marking its lowest point since June 2022.
Competitors are still sitting at 4.89% for the same term, but industry insiders are tipping a domino effect within days.
🔍 New ANZ Home Loan & Term Deposit Rates
-
🏠 1-Year Fixed Special: 4.79% (down from 4.95%)
-
📆 6-Month Fixed Special: 5.14%
-
🗓 2-Year Fixed Special: 4.89%
-
💰 Term Deposits: Down 10–15 basis points
💬 ANZ’s Take: Relief for Borrowers in Tough Times
Grant Knuckey, ANZ’s Managing Director for Personal Banking, says the cut will help Kiwis either taking on a new home loan or refixing amid a challenging economy.
“These cuts provide another opportunity for borrowers not already on fixed rates to take advantage of the falling interest rate environment,” Knuckey said.
While borrowers rejoice, savers are feeling the pinch, with deposit rates nudging lower.
📊 Market Experts Predict a Chain Reaction
Brad Olsen, Chief Executive of Infometrics, expects other major banks to follow suit within the week, calling ANZ’s move a “first-mover advantage.”
He suggests the rate drop is a pre-emptive strike ahead of next week’s Reserve Bank OCR decision.
“These new rates from ANZ all look to be market-leading right now. Other banks will likely move to stay competitive,” Olsen explained.
🏦 OCR Cuts on the Horizon?
Markets are currently pricing in a 90%+ probability that the OCR will be cut to 3% next week, with expectations it could fall further to 2.75% by mid-2026.
Olsen warns, however, that mortgage rate movements aren’t a simple copy-paste from OCR cuts:
-
🏦 Current OCR levels
-
📉 Expected future rate paths
-
📊 Market risks
-
💼 Competition among lenders
All play a part in setting mortgage rates.
📌 The Big Picture: What It Means for You
✅ Homeowners & First-Home Buyers → Lower repayments could mean thousands saved over the life of your loan.
✅ Investors → Cheaper borrowing costs may spark fresh interest in the property market.
❌ Savers → Expect smaller returns on term deposits.
📢 Bottom Line
ANZ’s aggressive rate cut could trigger a mortgage price war in New Zealand. The next OCR announcement will be the one to watch — and for borrowers, now might be the time to lock in a deal.
📝 Meta Description:
ANZ has slashed its one-year fixed mortgage rate to 4.79% — the lowest since 2022 — sparking predictions that other NZ banks will follow. Experts say it’s a pre-OCR move.
📌 Tags:
ANZ home loan rates, mortgage rate cuts NZ, Reserve Bank OCR decision, NZ interest rates August 2025, cheapest mortgage rates NZ, ANZ vs other banks, NZ property market news, Brad Olsen Infometrics, NZ housing market updates
