Mortgage rate rises are spreading to other banks quickly now. And some are coming back for rapid-fire repeat raises.
ASB is raising rates again today having previously raised them on November 5.
BNZ is back raising mortgage rates as well. In this cycle, they first raised them on November 8, and then again on November 21.
Both banks are also raising term deposit rates at the same time.
This combined change mirrors what ANZ did yesterday (Thursday).
ASB has raised all mortgage rates from 18 month fixed terms for both standard and special offers.
BankDirect has made the same changes, as has Sovereign.
Update: ASB has now confirmed it has increased its floating rate as well, raising it by +10 bps to 5.65%.
Sovereign however has also sneaked in a +10 bps hike to their floating rate which was already higher than its parent, taking that to 5.75%.
ASB rate rises range from +16 bps for 18 and 24 month 'specials' through to +30 bps for four and five years rate offers.
BNZ's changes today are far more modest, but come on top of more frequent raises.
Today, BNZ increased its 2 and 3 year special rates by +6 bps, their four year rate by +9 bps, their five year rate by +6 bps and their 7 year rate by +10 bps to 5.99%. This 5.99% rate is the highest mortgage rate in the New Zealand market, even higher than TSB Bank's 10 year rate which is still at 5.75%.
However, over the same timeframe as the ASB changes, the BNZ rises for 4 and five year are +30 bps, and for 7 years are up +44 bps.
We will have a separate report on the parallel term deposit changes soon.
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 marked over the past two weeks.
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 a fixed seven year rate which has been raised again today by +10 bps to 5.99%.
TSB Bank offers a fixed ten year rate at 5.75%.