The start of the week has brought out some very welcome changes to home loan rates in response to wholesale rates which have dropped since the Christchurch earthquake and the expected cut to the OCR next week.
ANZ and National banks started the week off with cuts to fixed home loan rates. Both banks reduced one-year rates by 50 basis points, 18-month rates have dropped by 26 points and its two and three-year rates have fallen by 16 and 11 points respectively.
Following these cuts, ASB, BankDirect, Sovereign & NZ Home Loans all reduced six-month and one-year rates by 50 basis points, 18-months dropped by 35 bps, two and three-year rates fell 20 bps each and four and five-year fixed rates were cut by 15 points.
Westpac's cuts were similar with its six-month and one-year rates dropping by 50 points, its 18-month rate fell by 40 bps and its two and three-year rates were cut by 10 and 11 points respectively.
