BNZ, TSB and ASB increase mortgage rates


Update: They’re coming fast now. ASB also advised on new rates (after this article was first published). They are in the table below.

More and more banks are “adjusting” their fixed mortgage rates upwards.

We now have notifications from BNZ and TSB.

BNZ pushed its boat as far as Westpac did on Thursday, matching or exceeding ANZ fixed rates for the very competitive 1 to 2 year rate set.

BNZ increases range from +25 basis points to +50 basis points.

In contrast, TSB has been much more restrained with its fixed rate hikes, increasing only +16 bps or +20 bps, and leaving rates below 4% unchanged for fixed 4 and 5 year maturities.

The TSB still has a rate below 3% (6 months at 2.89%) and still no rate above 4%.

We are waiting for the key rate announcements from ASB and Kiwibank, and they will probably come soon.

In the meantime, both banks have rates unusually lower than their main rivals, at least for a short time.

(Across the board, ASB announced term deposit rate increases ranging from +5 bps to +40 bps.)

Wholesale swap rates rose again on Thursday, especially on the long end. We not only have short-term swap pressure from New Zealand influences (RBNZ, CPI), but we also have real long-term pressure from international rates. In fact, a bullish flattening is underway on Friday – where short rates are rising faster than long rates.

A useful way to understand these modified home loan rates is to use our complete mortgage calculator which is also below. (The rates for term deposits can be estimated using this calculator).

And if you already have a fixed-term mortgage that is not currently up for renewal, our break cost calculator can help you assess your options. But breakage fees should be minimal in a rising market.

Here is the updated snapshot of the lowest advertised term mortgage rates currently offered by major retail banks.

Select the tabs of the chart

Select the tabs of the chart

Complete mortgage calculator

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