ANZ lifts majority of home loan rates in New Zealand

New Zealand’s largest bank has lifted several of its fixed-term home loan rates, becoming the third major lender this week to respond to rising borrowing costs.

According to a report by 1News, ANZ confirmed it will increase its fixed mortgage rates across terms ranging from 18 months to five years by 20 basis points, while its one-year rate will rise by 10 basis points. The changes will take effect from tomorrow. However, the bank’s six-month fixed special rate will remain unchanged.

Following the adjustments, the one-year special rate will increase to 4.59%, and the two-year special will climb to 5.09%. Standard rates are also set to rise, with the one-year rate moving to 5.19% and the two-year rate to 5.69%.

The move follows similar actions by other major banks. Westpac raised its longer-term rates a day earlier, while BNZ announced increases to some of its fixed home loan rates earlier the same day.

ANZ managing director for personal banking Grant Knuckey said the changes were driven by higher wholesale interest rates.
"Since the fixed rate changes we made in February, wholesale rates have continued to rise across all terms," he said.

Despite the increases, Knuckey noted that many customers are still benefiting from earlier rate cuts during the easing cycle.
"Seventy-eight per cent of ANZ's fixed home loans are now on rates below 5%, a significant shift from the end of 2024 when fewer than 10% of loans were on rates below 5%," 1News has quoted.

In addition to mortgage rate changes, ANZ also raised some term deposit rates by between 0.15% and 0.40% for terms of one year or longer.
"Our three-year term investment rate is now 4.40%, an 18-month high," the bank said.

Short-term deposit rates for periods of 270 days or less remain unchanged.

The rise in wholesale interest rates has been linked to global uncertainty, including ongoing conflict in the Middle East and increasing oil prices.

Westpac also cited similar pressures when announcing its own rate hikes. Managing director of product, sustainability and marketing, Sarah Hearn said: "Longer-term wholesale rates have increased significantly in recent weeks, driving up funding costs for lenders," as reported by 1News.

"With today's changes, we are absorbing some of those increased costs, and also passing on higher rates to our savings customers," she said, as quoted by 1News.

"In an environment of rising interest rates, it's a good time to set financial goals and plan how to achieve them," she said, encouraging both borrowers and savers to get in touch, 1News has quoted.