ANZ today announced it would drop its one-year fixed home loan rate to 3.95 per cent per annum.

Antonia Watson, ANZ Managing Director Retail and Business Banking, said the special rate would be available from 9 April and would match the lowest one-year rate offered by ANZ last November.

“As New Zealand’s largest home lender, we’re committed to helping as many Kiwis into their own homes as possible.”

Ms Watson said the Reserve Bank was expected to lower the Official Cash Rate, and the new rate would enable home loan customers to benefit from lower interest rates ahead of that change. The new rate also reflects a decline in wholesale rates which can be passed on to customers.

“The current low-interest rate environment not only presents an opportunity for new home buyers but for existing home loan customers to pay off as much of their debt as possible,” Ms Watson said.

No decision had been made on how long the rate would be available, but it would largely depend on market conditions.

ANZ also announced changes to special rate conditions, removing the need for “plus-one” of an ANZ product. Customers will now only need a minimum 20 per cent equity, as well as an ANZ transaction account with salary direct credited.