ANZ has dropped interest rates by 0.75 per cent to 4.5 per cent per annum on its one-year fixed owner-occupied home loan and residential investment property loan.
The move seems to be aimed at protecting their share of the home loan market after French bank, Bred Bank’s, announcement of a promotional fixed interest rate of 3.99% for 12 months or 4.99% for 24 months at the launch of its first branch in Suva.
ANZ’s fixed rate is available from today and is valid for applications received before 28 February 2013.
ANZ head of retail banking Fiji Graham Meecham said fixed loans are popular because they can provide customers with the security of having a set loan repayment each month.
"We understand that purchasing a house is the biggest single financial commitment most people will make so this is a great way for customers to manage their household budget more effectively," he said.
With the new rate applied to an owner occupied one-year fixed loan, customers can save approximately $521 in repayments per year on a 25-year $100,000 home loan compared with the previous rate.
“We’ve also made it easier for existing customers and other banks’ customers to make the move to ANZ. We will offer $1,500 cash towards legal fees and waive loan application fees on new lending of a minimum $50,000 when combined with ANZ House Insurance and an ANZ transaction account."
By Reginald Chandar