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Both home loan and term deposit rates have been moving, mostly up. We present tables that make it easy to compare who has moved what and by how much this past week

Both home loan and term deposit rates have been moving, mostly up. We present tables that make it easy to compare who has moved what and by how much this past week

The past few days have brought some chunky home loan rate changes, some of them surprising.

And there will be more to come.

And there have been some announcements of term deposit rate changes too - mostly higher.

But even though wholesale rates have risen and presumably driven the mortgage rates up, how does that compare with the term deposit rate offers?

The best way is to summarise them for our main retail banks.

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 July 19, 2021 % % % % % % %
               
ANZ 3.39 2.50
+0.31
2.74
+0.39
2.90
+0.31
3.24
+0.25
3.99 4.39
ASB 3.29
+0.30
2.55
+0.36
2.79
+0.30
2.95
+0.36
3.29
+0.30
3.69
+0.30
3.99
+0.30
3.29
+0.30
2.55
+0.36
2.79
+0.44
2.95
+0.40
3.25
+0.26
3.69
+0.30
3.99
+0.30
Kiwibank 3.55 2.49
+0.30
  2.49
-0.06
3.29
+0.30
3.59
+0.20
3.89
+0.20
Westpac 3.29
+0.30
2.55
+0.36
2.75
+0.30
2.89
+0.30
3.29
+0.30
3.49
+0.10
3.79
+0.10
               
Bank of China  3.45 2.15 2.15 2.55 2.75 3.05 3.35
China Construction Bank 4.70 2.65 2.65 2.65 2.80 2.89 2.99
Co-operative Bank 2.49
+0.30
2.49
+0.30
2.69
+0.30
2.89
+0.30
3.19
+0.20
3.49
+0.10
3.79
+0.10
Heartland Bank   1.85   2.35 2.45    
HSBC 2.79 2.09 2.19 2.49 2.79 3.19 3.49
ICBC  2.89 2.15 2.15 2.35 2.75 2.99 3.19
 SBS Bank 2.79 2.19 2.39 2.49 2.79 3.09 3.39
 [incl Price Match Promise]  2.89 2.50
+0.31
2.74
+0.39
2.89
+0.34
3.24
+0.25
3.49
+0.10
3.79
+0.10

Fixed mortgage rates

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And here are the new term deposit rate levels with which to be fair have been rising for longer, a trend that started some ten weeks ago.

The latest headline rate offers are in this table but with the markings for changes only for this week so far.

for a $25,000 deposit Rating 3/4 mths 5 / 6 / 7
mths
8 - 11
mths
  1 yr   18mths 2 yrs 3 yrs
Main banks                
ANZ AA- 0.45 0.80 0.90 1.20 1.20 1.30 1.40
ASB AA- 0.45 1.00
+0.20
0.90 1.20 1.25 1.40
+0.10
1.70
+0.30
AA- 0.45 0.80
+0.10
1.10
+0.10
1.15
+0.05
1.25
+0.05
1.35
+0.05
1.50
+0.10
Kiwibank A 0.45 1.20
+0.40
0.95 1.15
+0.10
  1.15 1.30
Westpac AA- 0.45 0.80 1.00 1.20 1.25 1.45
+0.10
1.70
+0.20
Other banks                
Co-operative Bank BBB 0.40 0.90
-0.10
1.00
+0.05
1.20 1.25 1.35 1.45
Heartland Bank BBB 1.10 1.05 0.90 1.35 1.15 1.20 1.35
HSBC Premier AA- 0.45 0.80 0.90 0.80   0.90 1.10
ICBC A 0.55 0.95 1.10 1.10 1.10 1.15 1.30
Rabobank A 0.40 1.25 1.10 1.35 1.25 1.35 1.50
SBS Bank BBB 0.50 0.90 1.10 1.15 1.00 1.20 1.35
A- 0.45 0.80 1.00 1.20 1.20 1.30 1.40

Term deposit rates

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You won't have to be extra sharp with your math to spot the differences.

And it is increasingly obvious where the remaining 'good deals' are. But be fast.

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13 Comments

For term deposit rates to make any minimal sense even as a conservative/defensive "investment", at least they have to return to pre-Covid levels. This means a few more months wait.

Interest will not increase to the point which hurt many, tax deductibility laws have no impact & no Capital gains tax because long back finance minister said so (Labor also said property will be affordable (hypocrite)).

Govt. keep giving warning with no action, so the market is running toward moon, making deposits smaller sitting in bank.

People who don't own home should consider leaving NZ & moving to Aus, otherwise they will be paying half or more than half of their salary in rent which means just dragging there life and heading no where.

Leave NZ, it's not the right place for living happy life & you will be wasting your talent.

Australia has even lower TD rates and house prices are are similar to NZ where there are good jobs. Minus the lost of social security and add the cost of moving, it's no better.

Lol. The houses are of a much higher quality and larger in Australia. The only place comparable to Auckland prices is Sydney and the incomes from those "good jobs" in Sydney leaves Auckland in the dust.

The cost of building brand new in Australia is less than half what it costs here. There is still time to move over.

Be quick.

One should see the new houses / townhouses being build in Auckland, either are brand new slums or massive and government in guise of increasing supply have made cost of land rise multiple time.

Earlier a decent old house on 600 / 800 sqmt was available for $900000 and now that same house is anywhere between 1.3 million to 2 million and tiny houses being made on them on narrow strip to have multiple houses are much smaller with no land and much more expensive than original house, SO HOW IS INCREASING SUPPLY HELPING ?

Biggest jump has been in Mangere Otara.....where house price have literally doubled in last one year and all in the name of development. Though against housing ponzi but now it seems that government and reserve bank has no option but to continue with their support to ponzi as otherwise NZ is sitting on ticking time bomb that may explode as from here on it makes no difference to many FHB, who have already withdrawn and have given up even dream of a home for themselves and their family.

Term deposits rates are way below inflation- a sure way to lose money.

Depending on your situation/risk tolerance/crystal ball, it's sometimes better to sacrifice a small, predictable amount of real value in order to avoid the capital risk associated with investment in assets that are arguably quite overvalued and subject to correction.

Once you are mortgage free and have a big chunk of change in a TD, you don't care. Your more interested in the bigger picture than a small loss.

How long until the 5 year column is 4.99%? Amazing how many people have done their affordability calculations on 3%...

yes I see 3% for 3 years has gone now.

People are not going to care about even 5% mortgage rates if their house is still going up at least 6 to 10% a year. Remember what your paying off in the house is going down while the value of it is going up.

On what planet does 5% not matter? You still have to make the payments on your mortgage. The value going up doesn’t mean jack if you can’t make your fortnightly instalments?

People will stop eating but surely will manage payments, till now you didn't understand the level of greed govt have fed to property owners.