ANZ raised carded home loan rates Tuesday. Update: BNZ did too on Wednesday.
"When reviewing interest rates we consider a range of factors, including the impact on customers, the underlying cost of funds (including wholesale rate movements) and competitor activity," ANZ says.
After these changes, ANZ has moved up broadly in line with ASB's changes made on September 4.
BNZ and Kiwibank are now the only two main banks with carded fixed rates below 7% for 2 years of less. BNZ is the main bank with the lowest one year carded rate at 7.09% which is -30 basis points (bps) lower than the new ANZ rate, -36 bps lower than ASB. (Note, BNZ unveiled one to five year increases early Wednesday, details here).
ANZ's latest home loan rate increases came with rises for term deposit savers which ranged between +10 bps and +30 bps in this round.
Since early September (when ASB raised mortgage rates aggressively), wholesale money rates rose - and then they fell more recently. The one year swap rate is now only +5 bps higher than on September 4. The two year swap rate is only a new +10 bps higher. Swap rates actually fell quite sharply Tuesday, in line with the pull-back in benchmark bond yields.
Obviously you should negotiate and shop around. Most banks will discount their carded rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's own product.
One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is 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.
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 October 25, 2023 | % | % | % | % | % | % | % |
| ANZ | 7.35 +0.26 |
7.39 +0.14 |
7.15 +0.11 |
7.09 +0.10 |
6.89 +0.20 |
7.34 +0.25 |
7.34 +0.25 |
 |
7.45 | 7.45 | 7.15 | 7.05 | 6.85 | 6.75 | 6.69 |
 |
7.39 | 7.25 +0.06 |
7.09 | 6.99 | 6.85 +0.16 |
6.75 +0.06 |
6.75 +0.06 |
 |
7.25 | 7.25 | 7.05 | 6.89 | 6.79 | 6.79 | |
 |
7.19 | 7.25 | 7.09 | 6.99 | 6.69 | 6.59 | 6.39 |
| Bank of China | 6.99 | 6.99 | 6.89 | 6.69 | 6.49 | 6.39 | |
| China Construction Bank | 7.19 | 7.09 | 6.89 | 6.75 | 6.49 | 6.40 | 6.40 |
| Co-operative Bank | 7.15 | 7.15 | 7.05 | 6.99 | 6.85 | 6.85 | 6.85 |
| Heartland Bank | 6.99 | 6.89 | 6.85 | 6.65 | |||
| ICBC | 7.19 | 7.05 | 6.95 | 6.85 | 6.59 | 6.49 | 6.49 |
 |
7.45 | 7.55 | 7.15 | 7.05 | 6.69 | 6.69 | 6.69 |
 |
7.19 | 7.19 | 7.19 | 6.99 | 6.85 | 6.75 | 6.69 |
Fixed mortgage rates
Select chart tabs
Daily swap rates
Select chart tabs
Comprehensive Mortgage Calculator
59 Comments
BNZ and Kiwibank are now the only two main banks with carded fixed rates below 7%. BNZ is the main bank with the lowest one year carded rate at 7.09% which is -30 bps lower than the new ANZ rate, -36 bps lower than ASB.
You need to qualify that statement further, the entire 3yr column is under 7% in your table.
It's no longer High for Longer (HFL), it's Just Higher.
It's suggestive of a new long term normal. "Apparently" according to the vested, borrowers are now getting used to it. I guess this would then imply there is less cause for rates to come down anytime soon??????
As you know it's more about higher and rising global wholesale rates at play than anything else.
Yes just looking at those rates shows there is a lot of uncertainty at the long end. They are trying to guide and pair their book on the 3 yr. ANZ has finally moved their long end TDs to 5 yr 5.45%, maybe starting to want TDs again after 2 years of very little interest in being competitive for funds. Interesting to see the SBS 1 yr TD hit 6.7% today.
maybe people need to chill, what happened after 2008 was unusual and the normal range of interest rates for NZ is much higher than we have had for the last ten years.
plenty of us still remember double digit home loan rates
Interest rates, 1966–2008 – Prices and inflation – Te Ara Encyclopedia of New Zealand
Yes but I think that's because low interest rates. I think people borrow as much as they can afford to repay so when interest rates are low they borrow more. If you believe house prices will go up the price of the house is irrelevant what it costs, its going to cost more later, as long as you can meet the repayments enough people will buy.
I see only 2 ways to get house prices to be affordable, increase interest rates or make people believe that house prices will fall, and I don't think the real estate sector or politicians in let that happen.
Events out of left field can drastically alter inflation, interest rates in either direction.
Oil, war, food shortages, climate change = up, equity crash = down. History serves as a valuable guide as to how the former events can eventually lead to the latter....
The key common denominator here is greed.
Its the same across the world, rates are not just higher for longer, but the fed is now saying the the neutral cash rate could be higher than we thought, as inflation, GDP and employment remain strong despite higher interest rates. Sound familiar? The same could be said for NZ.
https://www.bloomberg.com/news/articles/2023-10-10/fed-s-daly-says-she-…
Nah, I suspect he was given the boot because of his nasty, condescending comments about FHBs. Lots of people, including me, complained.
It was nasty and immature, and coming from someone in a very senior and high profile position, reflected very badly on the bank.
Potential FHBs have never eaten smashed avo etc. They are too busy saving. It is the entitled Gen X, I think, who eat that, and have earbuds, and I phone14s, and the latest sports shoes, and trendy tats, and inappropriate yoga pants, and beards with short back and sides, cut every 2 or 3 weeks, apparently . And wildly coloured hair. And inappropriate dogs in their rental places. I think that covers it. Put some more in if I have missed some.
He has been promoting his "they peaked now" expert views since June 2022.......how the hell does he still get airtime with being so terribly and consistently incorrect?
Telling FHBs to leap in now!! - before the fomo comes back! His job is really to feed the novice griss into the mill.
What a tool.
I'm disappointed with Stuff that they are now letting him spread his BS there too:
https://www.stuff.co.nz/business/property/300994894/heres-where-you-mig…
Hi timbob, thanks for the link, it's a great video from Daly! I'm not sure you watched though ? Or perhaps you didn't fully understand it? Daly clearly says that, whilst the neutral interest rate will remain above the pre-covid level, it will not be as high as today's 5% (in the USA). She even puts a figure (brave call) of around 3% .
Mind you the pain of double digit rates were easily mitigated if people just used those double digit term deposit rates to accumulate a bigger deposit. But instead people were in too much of a rush, insisting on taking out 2 mortgages and often vendors finance to make it all work.
and back in those days you did not pay tax on your savings so with compounding it grew quite quickly, that and it was HARD to get a mortgage from a bank, which all lead to house prices growing very slowly, it all changed in the late 80's when it suddenly was easier to get debt and it became a housing market
As a rule for the last few decades fixed rate mortgages would be roughly 2% over the swap rate. Appeared to me that the last 18 months it got as tight us just under 1% I’d expect this was because almost no business was written and banks were actively competing for the little business available assuming those who could transact would have been at the better end of the credit spectrum. So it looks to me like banks are now becoming quite confident that house prices and activity have reached the nadir and they are now trying to recoup their margin back to the historical norm. Probably indicates more than anything banks are quite confident about the housing environment now.
Good points. Even if Orr does not raise the OCR next month (as he should do) deposit and mortgage rates still have quite a bit higher to go.
And if the housing market really does bounce back a bit, and the new Government removes (as promised) the employment cause from the RBNZ's remit, then all bets are off.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.