Kiwibank raises 1 year mortgage rate to 5.80% from 5.65%

Kiwibank raises 1 year mortgage rate to 5.80% from 5.65%

Kiwibank has raised its one year fixed mortgage rate to 5.80% from 5.65%, which leaves TSB as the bank with the lowest one-year mortgage rate.

Kiwibank introduced a one year special rate on August 9 that it called a "Hot August Home Loan Special" and specified the special rate would expire at the end of August.

See our earlier article here.

Kiwibank's new one-year rate is now 5.80%, which brings it closer to the 5.95% offered by ANZ, BNZ and Westpac and the 5.90% offered by ASB.

See all mortgage rates here.

Fixed mortgage rates are often closely connected to wholesale interest rates set in the 'swaps' markets.

One year swaps rates have risen from a low of 2.72% on March 17 to 3.19% now, although they are off their 2011 high of 3.38% set on July 29.

Fears about a European and US recession saw the one year rates drop to 2.92% by August 10, although it has bounced back somewhat in the last two weeks.

See our interactive average bank mortgage rate chart here.

See our interactive swaps rates below.


 

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Put up me deposit interest rates please Kiwibank!

@ Bernard

One begins to wonder if the cross currency basis swap market window is closing or closed for NZ banks seeking cheap USD funding.

The cost was a significant ie ~ -90bps versus the Euro for European banks a week or so ago.

I have no access to current term rates for the NZD/USD pair. 

Maybe you could check and note if quotes in this market are even liquid at the moment. 

 

 

If the banks lift interest rates - should the Reserve Bank lift the OCR?  

so why would someone go from floating 5.45% to fixed 5.8% - that's $3500 on a million, close on another ten bucks a day per mil not yet required to feed the bank... not to mention savings in componding interest etc