BNZ has responded to higher wholesale swap rates by raising all its standard fixed mortgage rates today (Monday) for terms of three years and longer.
This change does not currently affect its 'specials'.
BNZ's standard three year fixed rate rises +16 bps to 5.15%. However its 'special' three year rate remains unchanged at 4.59% (although it did raise this on November 8).
Its standard four year fixed rate rises +21 bps to 5.20%, equaling the higher ANZ offer for that term,
Its standard five year fixed rate rises 24 bps to 5.39%. That makes BNZ's five year offer the highest in the market at present.
And its standard seven year fixed rate rises +34 bps to 5.89%. Interestingly, this is now higher than the TSB Bank ten year fixed mortgage rate which is still available at 5.75%. But for how long?
At the same time, BNZ has lowered two term deposit rates for terms under 1 year, and now offers a 'special' 2 year term deposit rate at 4%. We have more on these changes in a separate story.
These changes follow the sharp rises in wholesale swap rates for terms of three years and longer. In fact, the steepening of the rate curve has been quite startling over the past week.
Borrowers should expect other banks to respond in similar ways for similar reasons. The availability of low long term fixed rates is closing quickly.
A snapshot from the key retail banks is:
|below 80% LVR||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
In addition to the above table, BNZ has increased its fixed seven year rate from 5.55% by +34 bps to 5.89%
TSB Bank offers a fixed ten year rate at 5.75%.