It's been a long time since any bank changed a mortgage rate in New Zealand. In fact, there have been no changes in 2018.
SBS Bank has launched a new one year 'special' at 4.44%.
That is a reduction by them of -15 bps.
This marginally beats all other banks for this term, except HSBC Premier, which still has a 4.19% offer for one year fixed.
Update: TSB has now also reduced its one year 'special' to 4.44%. In their case, it is a reduction of -5 bps.
The lack of movement in rate competition is underpinned by little movement in wholesale rates, especially for rates of three years and shorter. These have hardly moved since October.
We are seeing wholesale rates move up recently at the long end (five to ten years).
But the changes for shorter durations are more modest. Since the start of 2018, there has been no change for the one year wholesale swap rate, the two year is up only +4 bps - mostly in the past few days - and the three year is up only +6 bps.
Five year rates are up +10 bps and that might see one or two of the major mortgage lenders tweak their mortgage rates for that term slightly higher.
Here is the full 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|
|as at January 22, 2018||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB still has a ten year fixed rate of 6.20%.