More rate cuts, more first home buyer activity

Hand holding mobile phone showing mortgage rates

As of this morning, ANZ has announced a further reduction of their two-year fixed-term rate to 3.59%, thus making them the market leader in the two-year space.

With rates such as 3.55% for one year fixed, and 3.65% for two years fixed available in the market, now could be a great time to enter the property market.

The latest data from CoreLogic has shown that some first home buyers are starting to catch a break and entering the market. The total lending by first home buyers in July was $1.03 billion, up from $926 million in June.

This increase could set to continue, as banks are now also beginning to lower their servicing test-rate. Following ASB's announcement last week, BNZ and ANZ have also joined the party and reduced their servicing test-rate as of yesterday.

How does this impact me?