BNZ has followed ANZ and raised its floating mortgage rate by less than the Reserve Bank's Official Cash Rate increase, completing the adjustments from the main banks. But the challenger banks are all yet to follow.
The BNZ increase is just +15 bps. But that makes it the second most expensive floating rate at 4.70% after Westpac's 4.84%. Kiwibank has the lowest floating rate among the main banks at 4.00%.
BNZ has not signaled any term deposit rate changes at this time.
The RBNZ hiked the OCR by 25 basis points on Wednesday and ANZ was the first to signal its change.
ASB was next out of the blocks saying it's "committed to holding its base business interest rate through to the end of 2021."
So, ASB’s variable home lending rate is unchanged at 4.45%.
Meanwhile, Kiwibank announced a series of increases to mortgage and savings rates.
Kiwibank's variable, offset and revolving lending rates are going up by the full +25 basis points. The new variable and offset rate will be 4%, and the revolving rate is being increased to 4.05%.
Then Westpac pushed through a full +25 bps hike, although it also raised some savings account rates modestly.
One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculator which is also below. (Term deposit rates can be assessed using this calculator). But most calculators are really only useful for fixed rate mortgages.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market.
Here is how the floating rates of the main retail banks compare now.
|as at October 8, 2021||Current||change||New||Effective|
|Bank of China||4.35|
We will update this table as each bank announces its rate reaction for home loans.