Latest news with #Leydon
1News
27-05-2025
- Business
- 1News
Major bank drops mortgage rates as OCR decision looms
A major bank has lowered home loan rates across the board ahead of tomorrow's widely anticipated official cash rate (OCR) cut. BNZ said there were 20% more customers applying for home loans in the six months to April, as compared to the same period last year. The bank's standard six-month fixed rate dropped from 5.49% to 5.35%, while the one-year rate fell from 4.99% to 4.95%. Its 18-month term fell from 4.95% to 4.89% and two-year term fell 4 basis points to 4.95%. The three-year term fell 20 basis points to 5.09%, four-year fell 30 basis points to 5.39% and the five-year rate fell 20 basis points to 5.59%. ADVERTISEMENT BNZ offers the same rates to those with 20% equity and those without - but those with less than 20% equity will pay a low equity premium. Variable rates have also been cut. The bank's home lending general manager James Leydon said the bank was confident to pass on savings because a cut from the Reserve Bank was widely expected tomorrow. Bank of New Zealand in Auckland CBD. (Source: Google Maps) The changes to mortgage rates follow a cut in term deposit rates at BNZ earlier in May. The bank lowered rates across various investment periods, with savers seeing the one-year term deposit rate fall to 3.90%. Leydon said of today's change: "We know many of our customers are looking beyond the very short-term fixed rates as the interest rate environment evolves. ADVERTISEMENT "By cutting our fixed rates across all terms, we're giving customers more choice and the ability to lock in a competitive rate for a longer period. "Lower interest rates should also help relieve some pressure on household budgets by making borrowing more affordable." The Reserve Bank will announce its OCR decision tomorrow, with economists widely expecting another 25 basis point cut.
NZ Herald
26-05-2025
- Business
- NZ Herald
BNZ cuts home loan rates ahead of OCR decision
BNZ was also dropping its standard variable rate from 6.69% to 6.44%. James Leydon, BNZ general manager home lending, said the bank was confident to pass on savings to home owners with the Reserve Bank widely expected to cut the OCR tomorrow. 'We know many of our customers are looking beyond the very short-term fixed rates as the interest rate environment evolves. 'By cutting our fixed rates across all terms, we're giving customers more choice and the ability to lock in a competitive rate for a longer period. 'Lower interest rates should also help relieve some pressure on household budgets by making borrowing more affordable.' Leydon said they were starting to see the impact of lower interest rates with increasing activity in the housing market. 'The number of customers applying for home loans with BNZ in the six months to April 2025 has increased 20% compared to the same time last year.' BNZ said it was also opening all its branches five days a week to accommodate customer needs. Significant economic uncertainty Financial markets and economists have priced in another 25 bps cut to the OCR tomorrow, which would take it to 3.25%. So far 200 bps have been cut from the OCR since August last year. 'There is always significant uncertainty about the economic outlook and the corresponding appropriate monetary policy. But rarely is there the sort of uncertainty we are experiencing now, thanks largely to Donald Trump's tariff policy gyrations,' BNZ head of research Stephen Toplis told the Herald earlier this week. Forecasts for the OCR have shifted in recent months with a low point of 2.75% or 2.5% by the end of the year, compared with the previously expected 3% by the end of the year. 'We, and the Reserve Bank, follow the BNZ-Business NZ PMI and PSI closely for indications of the current state of the economy,' Toplis said. 'Unfortunately, these indicators, when combined, suggest that the acceleration in growth that we had bargained on starting soon may be under threat.'
