The Red Bank matches ANZ's home loan rate hikes, but keeps its market leading 5-yr rate. However it doesn't follow ANZ with any term deposit rises

Under the cover provided by ANZ, Westpac has announced rate increases for fixed mortgage contracts, effective Thursday, May 11, 2017.

These changes are remarkably similar to the ANZ ones. But there are some variations.

Westpac has held its three year 'special' at 5.09%.

Westpac's one year 'special' rate of 4.59% is also unchanged in this move.

Their 18 month 'standard' rate is up +10 bps to 5.15% (the same as ANZ).

Their two year 'special' is up by +6 bps (the same rise as ANZ's) to 4.85%.

Their four years rate is up by +20 bps to 5.89%, taking it to the same level as ANZ for this term.

Their five year rate is up as well, but Westpac has a market-leading position for this term at 5.59%, the same as from HSBC. (Westpac's 'standard' five year rate is up +20 bps to 6.09%, the same level as ANZ.)

Westpac last changed fixed rates on February 1, 2017 when the one year rate was up pipped up +10 bps. The last substantial rise from Westpac was on January 13, 2017 when almost all rates were raised by between +10 bps and +30 bps.

We have not been advised of any equivalent term deposit rate increases by Westpac.

Overnight, there was some stirring in wholesale markets with minor rises at the longer end.

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

Here is a snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % % %
4.99 4.49 5.15 4.85 5.59 5.89 6.09
ASB 4.95 4.45 4.70 4.74 5.09 5.49 5.69
5.35 4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.99 4.69   4.79 5.25 5.75 5.99
Westpac 5.25 4.59 5.15 4.85 5.09 5.89 5.59
               
4.80 4.59 4.75 4.85 5.25 5.65 5.85
HSBC 4.85 4.09 4.09 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.85 4.79 5.25 5.65 5.85
4.85 4.55 4.75 4.65 5.15 5.65 5.79

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

And TSB Bank has a ten year fixed rate of 5.99%.

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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7 Comments

Its a bit like dripping tap - water torture , but a sure sign that rates are on the up for some time to come

Really depends on Dairy continuing to improve and construction/housing sector still growing.

Please elaborate?

BNZ next, to follow parent?
".. slugging interest-only owner occupier and residential property investors up to 50 basis points.."
http://tinyurl.com/mhs56b6

Home owners cant complain, they have enjoyed low rates for a very long time

Except, that has helped to fuel house prices,because it has meant people can afford to service a larger mortgage. So those people borrowing recently haven't really benefited. Also some people have been using their houses increasing RV, as a bank, to borrow more. It will likely all end in tears for some.

Seems some banks have been lowering their oncall deposits still. Infact TDs under 1 year also seem to have been lowered with some banks.