David White / Staff
The decline in fixed-rate mortgages comes down to the story of a steep drop in house prices across Tasman.
ANZ Bank will begin offering the lowest mortgage interest rates from "major New Zealand banks" in 70 years on Sunday.
However, customers may need to get in early and it is not the cheapest rate on the market.
Stephen Hurick, the spokesman, said the bank will cut its one-year fixed interest rate to 3.95 percent. This is currently down from 4.15%.
"Special offers" are only available until December 2, which means that only some of your existing customers at fixed interest rates will be eligible to receive benefits.
* Kiwi Bank offers the lowest fixed mortgage rate of 3.99%
* HSBC claims 3.95% mortgage rate is the lowest in 50 years
* SBS Bank's Boss said the 3.99% mortgage rate is profitable.
The pricing condition is that the customer owns 20% of the stock in the home.
HSBC has offered 3.85 percent mortgage at the end of the current year, down from 3.95 percent two years ago.
However, the rate seems to be for new borrowers or existing borrowers who pay at least $ 100,000 in debt, depending on the terms of the website.
If ANZ's interest rate cuts fall below 4%, it can convince home buyers that they can expect cheap lending.
The proposal came after the Federal Reserve decided to keep the official interest rate at 1.75 percent on Thursday.
Governor of the Reserve Bank Governor Adrian Orr predicted that the ratio would be maintained until 2020 by 2019.
There is no guarantee that the market situation will not change, but Orr said the interest rate should be "backing" while core inflation remains below the middle of the bank's targets.
If the weakness in the Australian market spreads to New Zealand, competition among banks for mortgage lending can be fierce and defend house prices.
Australia's Macquarie Bank predicted Wednesday's housing market slump in Australia will be larger than initially thought. The drop in prices for Sydney and Melbourne was between 15% and 20%.
Overall, Australian house prices were expected to decline by almost 10%, which would represent the greatest decline in nominal prices in almost four decades.
The ASB and Westpac's cheapest mortgage rates on Saturday were "special" at 4.15% in 18 months. BNZ was offering 4.15% for one year.
Kiwi Bank offers an interest rate of 4.05% throughout the year and SBS offers a 3.95% interest rate at the end of the two-year period.
ANZ Retail and Business Manager Antonia Watson said special facilities were designed to match the time when New Zealanders traditionally began looking for new homes.
"Although the bubble has dropped from the top of the house sales especially in Auckland, there is still a strong demand for home," she said.
"In today's competitive environment, we want to make sure that we are supporting our customers with homes."