ANZ's recent home loan rate hike has been followed by one major rival now - sort of.
BNZ has raised three fixed mortgage rates, and trimmed one in a minor way.
But that trimming has opened up a rate variation that borrowers and their brokers will notice.
BNZ took -4 bps off their carded three year fixed rate offer, taking it down to 4.65%. That compares with ANZ's new 4.75% rate for the same term, and 4.69% for ASB, Kiwibank and Westpac. Any rate cut these days is worth noting.
BNZ raised its one year carded offer by +20 bps to 3.85% and its 18 month rate to 4.19%, a rise of +10 bps. Their new one year rate matches the new ANZ rates for the same fixed period, but the new BNZ 18 month rate splits the difference between ANZ and the existing ASB and Westpac rates.
None of these new rate positions challenge Heartland Bank's offers which remain the lowest in the market.
Meanwhile in wholesale swap rate markets, rates inched higher today. The shift is small on a daily basis, but it is worth pointing out that the new 1 year swap rate is now its highest since June 2018, the new two year swap rate is the highest since February 2016, and the three year swap rate its highest since December 2016. This is unlikely to be the peak, even in the short term.
The ANZ and BNZ changes are in response to those wholesale market changes. And those are moving because of what financial markets are expecting the monetary policy authority will do.
Hanging over the upcoming RBNZ policy and OCR review next week are what Omicron will do to New Zealand, and what Ukraine will do to the international financial markets.
But the overall shift up has been all about rising inflation.
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 17, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.10 | 3.85 | 4.25 | 4.35 | 4.75 | 5.65 | 5.85 |
 |
4.19 | 3.65 | 4.09 | 4.15 | 4.69 | 4.95 | 5.19 |
 |
4.09 +0.10 |
3.85 +0.20 |
4.19 +0.10 |
4.35 | 4.65 -0.04 |
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 | 3.55 | 3.95 | 4.10 | 4.55 | 4.74 | 4.95 |
 |
3.60 | 3.60 | 3.90 | 3.99 | 4.35 | 4.74 | 4.90 |
Fixed mortgage rates
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Daily swap rates
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