Making sense of the changes

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

17th Jul 21, 1:41pm by David Chaston

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
	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
	3.55	2.49 +0.30		2.49 -0.06	3.29 +0.30	3.59 +0.20	3.89 +0.20
	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
	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

Select chart tabs

Source: interest.co.nz

Source:

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
	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
	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
	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
	A	0.40	1.25	1.10	1.35	1.25	1.35	1.50
	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

Select chart tabs

Source: interest.co.nz

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

by fortunr | 17th Jul 21, 2:26pm 1626488780

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.

by AJ123 | 17th Jul 21, 2:27pm 1626488849

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.

by CWBW | 17th Jul 21, 2:55pm 1626490541

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.

by Brock Landers | 17th Jul 21, 3:38pm 1626493124

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.

by alittle | 18th Jul 21, 9:16am 1626556563

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.

by CWBW | 17th Jul 21, 2:51pm 1626490276

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

by rjn1 | 17th Jul 21, 4:54pm 1626497677

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.

by Carlos67 | 18th Jul 21, 4:50pm 1626583817

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.

by JJS | 17th Jul 21, 5:12pm 1626498751

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

by Justa comment | 17th Jul 21, 8:09pm 1626509347

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

by Carlos67 | 18th Jul 21, 4:20pm 1626582046

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.

by youngdumbandbroke | 18th Jul 21, 6:48pm 1626590892

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?

by AJ123 | 18th Jul 21, 7:49pm 1626594588

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.

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

Fixed mortgage rates

Select chart tabs

Term deposit rates

Select chart tabs

13 Comments