ANZ’s latest Mortgage Borrowing Strategy Opinion

MORTGAGE BORROWING STRATEGY

ANZ’s carded mortgage rates have seen a number of changes in the past month, with the bellwether 2 and 3 year fixed rates falling as competition in the mortgage market heats up, while shorter-dated fixed rates continue to lift in line with a higher OCR. Borrowers with at least 20% equity will find it hard to go past the 2 year fixed rate special of 5.85%, which is back to December levels and now close to the cheapest rate on the curve. Breakeven analysis suggests there is lesser value in fixing for longer terms of 4-5 years, with these rates already higher in anticipation of the RBNZ tightening cycle.