Kiwibank has changed fixed mortgage rates, responding to rising wholesale swap rate changes.
It is reducing its one year 'special' rate by -10 basis points to 4.19%, making that the lowest carded, or advertised, one year rate among any of the large banks, and equal to the HSBC Premier offer (but without the Premier limitations).
TSB Bank also has a 4.19% rate, but for two years. Plus the TSB Bank offer comes with "up to $2,000 cash".
It is increasing its three 'special' year rate by +26 bps to 4.65%, and removing itself as a hotly competitive option for this term.
The bank's lifting its four year rate by 20 bps to 5.10%, and it is increasing its standard five year rate by +21 bps to 5.20%, leaving Westpac as the bank with the lowest rate offer for this term.
These changes follow the sharp rises in wholesale swap rates for terms of three years and longer. These rises have however been absent from the one year duration, which allows Kiwibank to make today's cut.
Similar changes apply to the white-labelled AMP Home Loans channel.
And today (Wednesday), we have seen further rises resume in wholesale rates, following yesterday's minor retrenchment.
These changes follow earlier hikes for longer term fixed rates by BNZ and ASB. The Co-operative Bank also raised some longer rates earlier this week.
The Co-operative Bank also raised some of its term deposit rates, but that is not something Kiwibank has announced so far today.
A snapshot from the key retail banks is:
|below 80% LVR||6 mths||1 yr||18 mths||2 yrs||3 yrs||5 yrs|
In addition to the above table, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.
How long these very long term BNZ and TSB Bank rate offers can last must surely be in question.