BNZ raises fixed mortgage rates; TSB lowers 6 mth, raises 3, 4, 5 yr (Update 2)

BNZ raises fixed mortgage rates; TSB lowers 6 mth, raises 3, 4, 5 yr (Update 2)
BNZ has announced a wide-ranging series of rate changes for its mortgages, mostly increases to fixed rates for terms of one to seven years. (Update 2 include BNZ Classic rate announcement.) However, it has pulled its one year Classic home loan offer and the 5.49% discounted rate that went with it, followed by a Monday morning announcement of a new 18 month Classic rate of 5.99%. This new rate compares to 5.79% offered by ANZ National; 5.89% offered by Westpac; and 6.00% from ASB, although Bank Direct is offering 5.95%. BNZ has also reduced its Total Money variable rate to 5.99% from 6.25%, matching Kiwibank's variable rate. The increases in fixed rates range from +0.20% for their 1 year fixed offer, to +0.49 for their five year fixed offer. These changes follow ASB's market-leading fixed-rate increases, and in some cases exceed the ASB price positions. BNZ is the only bank to offer fixed rate contracts longer than 5 years, with their seven year offer now priced at 8.50% It is expected most other banks will follow next week, with longer term fixed rate offers increasing in response to recent wholesale money cost rises, driven by international benchmarks. You can see all the up-to-date mortgage rate offers from all institutions here >>> Our charts of recent mortgage rate histories are here >>> At the same time, BNZ has changed its rates for term deposits, focusing its short-term offer at 4.25% for 5 months, and reducing its rates for 18 months to 4 years, so that its 5 year TD offer of 6.00% remains its top rate. Also over the weekend, TSB announced a number of mortgage rate changes. Despite raising longer term rates, TSB lowered its six month rate by 14 bps to 5.50%. It raised its three year rate by 15 bps to 6.90%; four year by 15 bps to 7.55%; and five year by 35 bps to 7.95%.

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