Update: This review also now includes increases from HSBC.
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Following ANZ's recent chunky rises, the next bank to raise home loan rates is ASB.
And while they now have a lower one year fixed rate than the new higher ANZ equivalent rate, ASB have in fact pushed up their 18 month, two year, and three year fixed rates above the ANZ benchmarks.
That no doubt reflects wholesale rate rises. There is no sign wholesale swap rate rises are easing off.
It is clear that a 5% two year rate is now very close. This is a fast run-up. For perspective, we had a two year main bank rate under 3% last just six months ago. It rose smartly from there and the last sub-4% rate was upon us in early November. But it has taken another five months for us to threaten 5% for this benchmark term, so perhaps a slowing in the rises is evident now.
But will the pace quicken or slow from here? The swap rate trajectory history doesn't suggest a slowing. In fact it might have gotten ahead of retail mortgage rates and banks are probably feeling the margin pressure. They may also be starting to feel volume pressure.
But what they can do is certainly constrained by competitive impulses. The spread between the lowest offeror in the market (Heartland Bank) and the highest (always a main bank) for carded rates is now 71 bps for a one year term, 90 bps for a two year term, and 104 bps for three years. These are unusually wide margins. Shopping around can bring meaningful savings.
And the juicy Australian election budget probably means markets will expect rate rises to start there sooner and be larger than otherwise, putting added pressure on our wholesale rates.
So far, ASB has not matched these home loan rate increases with term deposit rate rises - but that is likely soon.
One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculator which is also below. (Term deposit rates can be assessed using this calculator).
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market.
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Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at April 1, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.45 | 4.20 | 4.55 | 4.85 | 5.15 | 5.99 | 6.09 |
 |
4.49 | 4.15 +0.16 |
4.75 +0.21 |
4.95 +0.26 |
5.29 +0.04 |
5.89 +0.29 |
5.99 +0.19 |
 |
4.19 | 3.99 | 4.39 | 4.55 | 4.79 | 4.99 | 5.09 |
 |
4.19 | 3.99 | 4.55 | 4.79 | 4.99 | 5.15 | |
 |
4.19 | 3.99 | 4.29 | 4.55 | 4.89 | 4.99 | 5.09 |
| Bank of China | 3.95 | 3.85 | 4.15 | 4.35 | 4.55 | 4.85 | 5.05 |
| China Construction Bank | 4.15 | 3.95 | 4.35 | 4.50 | 4.75 | 5.09 | 5.20 |
| Co-operative Bank [*=FHB] | 3.79 | 3.69* | 4.19 | 4.50 | 4.75 | 4.99 | 5.09 |
| Heartland Bank | 3.49 | 4.05 | 4.25 | ||||
| HSBC | 4.09 +0.08 |
3.95 | 4.49 +0.20 |
4.69 +0.24 |
4.89 +0.24 |
5.04 +0.15 |
5.19 +0.15 |
| ICBC | 3.85 | 3.69 | 3.99 | 4.25 | 4.55 | 4.85 | 5.05 |
 |
3.99 | 3.75 | 4.19 | 4.35 | 4.69 | 4.99 | 5.05 |
 |
3.95 | 3.95 | 4.39 | 4.55 | 4.75 | 4.99 | 5.09 |
Fixed mortgage rates
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Daily swap rates
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