Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Time for Kiwis to refocus their financial strategies

11 August 2016

Time for Kiwis to refocus their financial strategies

Record low interest rates are an opportunity for households to pay down their home loans and to focus on saving, ANZ New Zealand CEO David Hisco said today.

ANZ announced today it will lower floating home loan rates by 0.05% p.a. to 5.59% p.a. but will increase rates for some term deposits by up to 0.30% p.a. to 3.60% p.a. in response to the Reserve Bank’s official cash rate cut.

To continue support for the business community, particularly farmers, floating rates for Commercial, Agri and Business loans will be reduced by 0.15% p.a.

Mr Hisco said ANZ was refocusing its lending and borrowing emphasis.

“On the deposits side, we have five times as many customers as those with home loans. Lifting term deposit rates will help customers grow their savings,” Mr Hisco said.

“We are sending a strong signal today to New Zealanders that at a time of record low interest rates, it is more responsible to pay down home loans and save, than borrow more. New Zealanders need to consider changing their financial strategies.”

So that first home buyers weren’t disadvantaged by the changes, ANZ also today launched a special home loan package.

Only available to first home buyers using KiwiSaver, it will include a 0.20% p.a. discount on the prevailing ANZ standard variable interest rate and access to ANZ Buy Ready, a comprehensive set of tools, resources and special benefits to help people through the house purchase process.

“The Reserve Bank’s decision to cut the OCR to try and drive the New Zealand dollar lower is the right move to protect our export industries which employ many Kiwis,” Mr Hisco said.

“Dramatically lowering lending rates would only throw fuel on the fire in an overheated housing market. That would be irresponsible and negate any economic benefit to New Zealand and drive up the country’s debt as banks seek expensive offshore funding for increasing home loan books.

“While this may mean we write fewer investment loans, we believe it is the right thing to do.

“Meanwhile, we still want to help first home buyers and commercial, agriculture and business customers.”

He said ANZ would monitor the impacts of this decision and may adjust its market position in future to ensure it remained competitive.

Summary

ANZ Floating Rate Home Loans, ANZ Flexible Home Loans and ANZ Business Flexible Facility loans down 0.05% p.a.
But some ANZ Term Deposits increased by up to 0.30% p.a.
Commercial, Agri and Business floating loans down 0.15% p.a.
Launch of first home buyers package with a 0.20% p.a. discount on the floating home loan rate

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news