Challenger bank announces some small home loan rate rises, the second set in two weeks. It also raises one term deposit rate

Market leading mortgage lender, TSB Bank, has carefully raised rates, holding on it its relative position with four relatively minor increases.

They have made no changes to any rates fixed for 18 months and shorter (and that includes their floating rate).

But they have raised their two year rate by +10 bps to 4.75%.

Their three year fixed rate has been increased by +6 bps to 5.05%.

Their four year fixed rate has been given a +5 bps tweak higher to 5.45%.

And their five year rate has gotten the same increase, up +5 bps to 5.50%

They have made no change to their unique ten year fixed rate of 5.75%.

These changes are effective from Wednesday, February 15, 2017.

At the same time, they have also raised one key term deposit rate. Their new nine month term deposit 'special' of 3.80% is a market stand-out at this time.

TSB Bank last raised home loan rates on February 1, 2017 when they also raised their floating mortgage rate.

Today's changes do not alter who has the leading carded rates for mortgage borrowers. HSBC Premier has the market leading position for all terms at this time. Other than HSBC Premier, ANZ now has the lowest rate for one year, the Co-operative Bank has the next lowest 18 month rate, and TSB Bank has the next lowest rates for all terms 2 to 5 years, sharing it with SBS Bank at 4 years.

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 
  % % % % % %
4.39 5.05 4.79 5.49 5.70 5.85
ASB 4.59 4.75 4.79 5.09 5.49 5.69
4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.45   4.79 5.25 5.65 5.85
Westpac 4.59 5.05 4.79 5.09 5.69 5.49
             
4.55 4.70 4.85 5.25 5.55 5.75
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.45 4.75 4.75 5.09 5.45 5.69
4.45 4.75 4.75 5.05 5.45 5.50

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

TSB Bank has a ten year fixed rate of 5.75%.

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5 Comments

That 10 year rate of 5.75 will look mightly good in 2 years time.

Maybe sooner...

Copy paste "rate rate". I need to get a life.

thanks. fixed now

The 3.8% is probably the highest published rate, but I have found some other banks offering that for 9 months if you ask them. It is good to see the rates going up for savers, they have had it tough for a long time. Especially those retired people who were let down but the finance company collapses, and then poor savings rates.