With wholesale interest rates no longer rising, especially at the longer end of the term spectrum, some local banks have taken the opportunity to tweak their home loan rates lower.
This is in contrast to others who have shifted floating rates higher. Kiwibank has added +10 bps to theirs taking it to 5.80% and SBS Bank has adjust up by the same amount to 5.89%.
On the fixed rate front, the changes have been going the other way.
TSB Bank has shifted its 'special from two years to three years. Their new fixed three year 'special' rate is an attractive 4.99%, a -16 bps cut from their previous 'special'.
However, they have ended their hot 4.49% two year 'special', and reverted that rate back to 4.79%, a +30 bps correction.
And at the same time they raised the rate for their unique fixed ten year option, taking it up from 5.99% to 6.20%, a +21 bps rise.
Kiwibank has announced that effective Monday, their three year 'special' rate will drop to 5.09%, a -14 bps reduction. At that rate, it will just match the 'special' rates for all their main bank rivals (except ANZ).
The Co-operative Bank also changed rates this week, cutting their four year "owner occupied" rate by -10 bps to 5.55%, and made a similar reduction to their five year "owner occupied" rate to 5.75%. The same reductions apply to their standard rates for these terms.
The result of all these changes sees ASB and Kiwibank hold on to the lowest offers for one year fixed (other than HSBC Premier, who has the lowest overall rate card for almost all terms).
For an eighteen month term, the lowest carded rates are offered by ASB at 4.70%.
For two years fixed, the lowest is 4.79% from BNZ, Kiwibank, and still TSB Bank, even after their recent rise.
For three years, TSB Bank's new 4.99% offer is now market leading.
For four years, you can't ignore ASB's 5.59% offer.
For five years, Westpac's 5.59% 'special' stands out for this term. It even matches the HSBC Premier rate.
Here is a snapshot of the fixed-term rates on offer from the key retail banks.
|below 80% LVR||6 mths||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 is 6.15%.
And TSB Bank has a ten year fixed rate which has been raised by +21 bps to 6.20%.