As wholesale swap rates rise in response to increasing demand generated by borrowers switching from floating rates to less expensive fixed rates, we are seeing banks raise selected fixed rates in response to that rising cost.
Westpac has announced increases in its 18 month fixed mortgage rate to 5.65% from 5.55% and a similar rise in its four year fixed rate, going to 6.45% from 6.35%.
The Westpac increase in the 18 month rate follows a rise by BNZ last week, but the Westpac rate for this term is now above most of its main-bank competitors. For the eighteen month fixed term, ASB currently has the lowest rate:
| ANZ | 5.55% |
| ASB | 5.40% |
| BNZ | 5.55% ↑ |
| National Bank | 5.55% |
| TSB | 5.65% |
| Westpac | 5.65% ↑ |
For the four year term, Westpac's new 6.35% rate is above most of its main-bank competitors who offer rates between 6.10% and 6.25% for this term. The Cooperative bank offers 6.05% for four years fixed.
You can find an updated list of all bank and non-bank mortgage rates here »
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Mortgagechoices involve making a significant financial decision so it often pays to get independent professional advice.
A Roost mortgage broker can be contacted by following this link »
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3 Comments
FYI from a reader via email:
I wanted to give you a boots-on-the-ground “off the books” rates that National is offering. I’m in the middle of negotiating my mortgage which rolls over on July 5th. Here is what National has quoted me as a “special rate”:
1 year fixed: 4.75%
2 year fixed: 4.95%
Floating: 5.34%
I’m currently trying to grind them down to a two year fixed rate of 4.85% with $2,000 “loyalty incentive” to not switch banks.
I would love to hear how you get on.
Even at the slightest shiff of financial optimism the vultures hoover and swoop. All Banks, not just Westpac are sitting in the wings, watching and waiting for that glimmer of hope (no matter how small it is), that there is light at the end of the euro crisis tunnel. Yes there will be a resurgance in interest rates, but based on current economic indicators this will be short lived.
Boofta
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