BNZ raises key home loan rates less than OCR rise, cuts three year fixed rate below rivals

BNZ raises key home loan rates less than OCR rise, cuts three year fixed rate below rivals

BNZ has become the latest major bank to raise home loan interest rates in response to the recent OCR hike.

They have also raised a number of fixed rates as well, in response to rising wholesale rates.

There are growing indications that borrowers are rushing to fix, and that can become a strong driver of those rising wholesale rates.

BNZ's flagship TotalMoney floating rate has been increased to 5.99%, up 25 bps from 5.74%.

However, BNZ's standard floating rate has only been raised by 20 bps to 6.19% from 5.99%. These rates have been above the general market for some time.

Their revolving credit accounts have also increased; the Rapid Repay account is up 20 bps to 6.19, and their Mortgage One product is also up 20 bps to 6.60%.

BNZ's fixed rates are also changing. Their six month fixed rate has been raised to 5.49%, up 24 bps from 5.25%.

Their one year fixed rate has been raised by 20 bps to 5.69% from 5.49%.

And their three year fixed rate has been cut by 6 bps to 6.29% from 6.35%. This is the best three year rate among their main banks.

At the same time, BNZ has raised two key term deposit rates, although neither is market leading.

BNZ's new floating rates compare with their main rivals as follows:

below 80% LVR Floating Revolving
    Credit
5.99% 6.10%
ASB 6.00% 6.00%
 - Total Money 5.99% 6.19%
 - Standard & FlyBuys 6.19% 6.19%
Kiwibank 5.90% 5.90%
Westpac 5.64% 5.75%
     
Co-op Bank 5.95% 5.95%
HSBC 5.99% 5.99%
SBS / HBS 5.65% 5.65%
TSB 6.04% 6.04%

See all carded, or advertised, bank home loan rates here.

below 80% LVR 1 yr 18 mths 2 yrs 3 yrs 5 yrs
           
5.69% 5.85% 6.29% 6.65% 7.20%
ASB 5.69% 5.85% 6.29% 6.60% 7.20%
5.69% 5.85% 5.95% 6.29% 7.20%
Kiwibank 5.49%   5.99% 6.40% 6.90%
Westpac 5.49% 5.85% 5.95% 6.35% 7.20%
           
Co-op Bank 5.49% 5.85% 5.99% 6.35% 7.10%
HSBC 5.39%   6.29% 6.55% 7.20%
SBS / HBS 5.35% 5.60% 5.80% 6.10% 6.70%
TSB 5.40% 5.85% 5.99% 6.40% 7.20%

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Good on them . Its either a reflection of their actual average funding costs or clever marketing