Why are floating interest rates so high?

There should be a price to pay for the flexibility a floating product provides, but the price is ridiculously expensive. (Image: Deposit Photos)

Cameron Bagrie

Mon, 28 Jun 2021

The latest ANZ floating loan special is welcome but should also draw attention why carded floating rates are so much higher than a one-year fixed rate.Plaudits to the ANZ for the 1.68% floating rate on new builds, called 'blueprint to build'. It follows ASB’s 1.79% 'back my build' offer, Heartland’s sub 2% offer and Simplicity shaking the market up.It is always good to see consumers benefitting through lower rates but also ANZ and ASB recognising the importance of home ownership and the importance of supply. The...

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