This morning Westpac has met the market for both the two year and the three year fixed home loan rates.
It has introduced a 'special' two year rate of 5.95% for <80 LVR lending. Its standard rate of 6.29% still applies.
And it has cut its standard three year rate to 6.35% by 4 bps from 6.39%.
These moves bring it into line with the recently reduced rate levels of ASB (2yr) and BNZ (3yrs).
Yesterday we also saw the Co-operative Bank increase its market leading one year home loan rate. SBS now has the lowest one year rate.
Yesterday we saw swap rates fall back across the curve.
Markets are in more doubt as the next RBNZ OCR review gets closer. International rate softness is probably the bigger influence in our wholesale rates however, and these are not showing rising rates.
Wholesale rates had crept up before New Year in anticipation of an official rate hike, but from international events they then softened. More recently however, they have started rising again as the threat of an RBNZ hike gets closer although these latest rises are modest.
However it is clear that market participants still have doubts that the RBNZ will actually move in March, especially if the exchange rate continues its rise.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
5.49% | 5.85% | 5.95% | 6.60% | 7.20% |
| BNZ | 5.39% | 5.85% | 6.29% | 6.35% | 7.20% |
| Kiwibank | 5.49% | 5.99% | 6.40% | 6.90% | |
 |
5.49% | 5.69% | 5.95% | 6.35% | 7.20% |
| Co-op Bank | 5.39% | 5.85% | 5.85% | 6.25% | 7.10% |
 |
5.39% | 6.29% | 6.55% | 7.20% | |
| SBS / HBS | 5.35% | 5.60% | 5.80% | 6.10% | 6.70% |
| TSB | 5.40% | 5.85% | 5.99% | 6.40% | 7.20% |
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2 Comments
I'm happy with all my debt floating at 5.15%. (negotiated rate). I know interest rates are going to rise but I have been on the better side of the equation for 18 months now and I have done the numbers to ensure I can cover my servicing if rates move to 8.5% or higher.
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