New Zealand's largest home loan lender hikes all mortgage rates of 18 months and longer by about +15 bps, following wholesale rate rises

ANZ has raised most of its fixed mortgage rates, for terms 18 months and longer.

In the same set the bank has raised its two year 'special' as well.

The six month and one year rates are unchanged. ANZ's one year 'special' is still 4.25%.

This change reflects recent fast rises in wholesale swap rates.

At the same time, ANZ has raised its term deposit rates for terms of two years and longer.

In fact, the term deposit rate increases are greater in this update than the mortgage rate rises.

The new ANZ 18 month fixed home loan rate is now 4.99%, a rise of +10 bps.

The new ANZ two year 'special' is now 4.59%, a rise of +14 bps.

The new three year fixed rate is now 5.29%, also a rise of +14 bps.

The new four year rate is 5.45%, a rise of +16 bps.

And the new five year rate is 5.60%, a rise of +15 bps.

Other banks have been recently announcing a few individual rises, avoiding the 'whole rate card' approach ANZ has stayed with.

ANZ's term deposit rate raises are interesting too - mainly because they are larger increases than the mortgage ones. ANZ TD rates have risen +20 to +40 bps for terms two to five years. ANZ now has both its four and five year term deposit rates returning 4% or more.

After these mortgage rate changes which are effective Tuesday, December 20, the bank with the lowest rates is HSBC Premier who are now market leaders for all terms, and are joined at the five year term by both SBS Bank and TSB Bank.

We will have a separate review of ANZ's term deposit rate changes.

See all banks' carded, or advertised, home loan rates here.

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.25 4.99 4.59 5.29 5.45 5.60
ASB 4.29 4.45 4.49 4.79 5.19 5.39
4.29 4.99 4.45 4.65 5.29 5.45
Kiwibank 4.24   4.39 4.75 5.30 5.40
Westpac 4.25 4.95 4.39 4.75 5.29 5.39
             
4.39 4.45 4.45 4.79 5.29 5.45
HSBC 4.19 4.19 4.19 4.49 4.79 4.99
HSBC 4.29 4.29 4.29 4.65 4.99 4.99
4.25 4.45 4.49 4.59 4.89 4.99

In addition to the above table, BNZ has a fixed seven year rate of 5.99%.

TSB Bank offers a fixed ten year rate at 5.75%.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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12 Comments

The kiwi 1yr rate still incorrectly reads 4.19% on this table - they actually increased monday morning. Also you may want to check your Westpac ones as the 2,3 & 5 differ to what their site says.

Thanks for the poke on the KB rate. Updated now. Don't agree on the Westpac ones though. I think we have them correct. If not, can you pls be specific.

When I wrote that comment, I think the WPC rates on that table were different... must have been timing, or delusion :)

ANZ really don't want to lend money at the moment - makes you wonder whats going on behind the scenes. I personally would be a bit scared to deposit money there right now...

I'd be more scared about depositing money on the banks that keep lending and exposing themselves to the property market :)

The Banks raising interest rates is just a smoke screen as they have already done the damage since June when they introduced restrictive Lending practices that have stopped the Unitary Plan moving forward.

Developers and Builders cease their house building projects as they try to seek second tier lending as the Major banks that are Australian owned have no real interest in Lending for much needed housing in Auckland. The banks have also introduced a racist policy, blocking overseas income to new New Zealand citizens.

Cmon its blatantly simple - the cost of "borrowing" money is getting more expensive and for those that continue to say its all a smoke screen by the Banks are completely wrong. Long term bond rates are increasing at an alarming rate, and combined with the "Trump factor" uncertainty, home owners should be prepared for the inevitable increase in 3-5 year interest rates next year, if not before. Unfortunately for some this will prove too much.

Seems banks are still reducing rates on their online savings and bonus accounts. eg Westpacs have just dropped. But some banks are upping the percentage on term deposits. So it looks like they are wanting to lock savers in for longer. That is a bit of a worry.. Guessing that is why a lot of baby boomers with money are taking their money out and buying houses,and some are also buying shares.

Hmmm . . . . .
That 16 basis point increase has just added a $50 per fortnight on the $800,000 loan. No sweat.
The likely 1% some time next year is going to be just over $300 extra a fortnight. Feel lucky . . . . ?

David you have pressed the wrong button

Is it Fake News

To get things into perspective it may be a good idea to have a floating rate column , so when can see when it becomes stupid to fix