The recent inability of wholesale interest rates to kick on higher as many had expected is opening the door for some settling in home loan rate offers.
The latest to "settle" back is from TSB.
TSB has cut its two year offer to 3.99%, a 31 basis points drop. That matches SBS Bank's two year 'special'.
That takes them below the ASB offer of 4.15% which is the lowest two year rate on offer from a major bank - and which has been in place since December 7.
Recently, ASB was matched by the Cooperative Bank for that rate.
But no bank has a two year fixed rate as low as Heartland Bank's 3.79%.
Rates at these slightly lower levels are possible because the wholesale rates have not yet kick higher. They first reached the current levels in late November and drifted lower over the New Year period. They have risen somewhat since, but only back to those November levels - when the current mortgage rates were settling in to their 'new higher levels'. There has been no kick higher since.
It may only be a matter of time however. A lot will depend on the Reserve Bank's monetary policy review on February 23, and how financial markets price in what they think will happen before that.
The bite Omicron is having, especially on jobs, will come into play. But taming inflation before it becomes unmanageable is top of the policymaker's agenda still.
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).
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 the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at February 3, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.00 | 3.65 | 4.15 | 4.35 | 4.75 | 5.65 | 5.85 |
 |
4.19 | 3.65 | 4.09 | 4.15 | 4.69 | 4.95 | 5.19 |
 |
3.99 | 3.65 | 4.09 | 4.35 | 4.69 | 4.89 | 4.99 |
 |
4.19 | 3.69 | 4.35 | 4.69 | 4.99 | 5.15 | |
 |
4.19 | 3.69 | 4.09 | 4.35 | 4.69 | 4.79 | 4.95 |
| Bank of China | 3.49 | 3.49 | 3.69 | 3.99 | 4.45 | 4.65 | 4.85 |
| China Construction Bank | 3.65 | 3.65 | 3.85 | 4.35 | 4.65 | 4.95 | 5.05 |
| Co-operative Bank [*=FHB] | 3.39 | 3.29* | 4.05 | 4.15 | 4.55 | 4.89 | 4.99 |
| Heartland Bank | 3.25 | 3.79 | 4.15 | ||||
| HSBC | 3.94 | 3.49 | 3.94 | 4.15 | 4.54 | 4.74 | 4.99 |
| ICBC | 3.65 | 3.49 | 3.85 | 4.05 | 4.55 | 4.75 | 4.95 |
 |
3.79 | 3.45 | 3.95 | 3.99 | 4.35 | 4.59 | 4.69 |
 |
3.60 | 3.60 | 4.00 | 3.99 -0.31 |
4.64 | 4.74 | 4.90 |
Fixed mortgage rates
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Daily swap rates
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