Another major home loan lender has raised rates, this time ASB.
The increases are notable because they have removed the bank's very competitive 4.15% two year fixed rate from the market now, and settled in with other banks at 4.35% for this term.
The other ASB rate increases are relatively minor, but they do reinforce the shift higher in overall mortgage rates, across the term curve.
Cooperative Bank has also raised rates in the past few days.
ANZ and BNZ have already moved up. Kiwibank and Westpac are yet to, and their moves will probably come relatively quickly now given the two largest home loan lenders - ANZ and ASB - have already moved up.
It might be useful to assess how rates have changed over the past five years on this date. This table is for the popular two year rate at about February 18 each year
| about February 18 | 2018 | 2019 | 2020 | 2021 | 2022 |
| % | % | % | % | % | |
| OCR | 1.75 | 1.75 | 1.00 | 0.25 | 0.75 |
| 2yr swap rate | 2.17 | 1.91 | 1.12 | 0.38 | 2.57 |
| CPI | 1.10 | 1.48 | 2.53 | 1.52 | 5.95 |
| carded ... | |||||
| ANZ | 4.65 | 4.29 | 3.65 | 2.69 | 4.35 |
| ASB | 4.65 | 4.29 | 3.55 | 2.59 | 4.35 |
| BNZ | 4.65 | 4.29 | 3.55 | 2.59 | 4.35 |
| Kiwibank | 4.65 | 4.19 | 3.55 | 2.65 | 4.35 |
| Westpac | 4.65 | 4.29 | 3.55 | 2.69 | 4.35 |
The table reveals that fixed mortgage rates are not quite back to 2018 levels even though swap rates are well above those levels now. And it also reveals that the Official Cash Rate (OCR) still has 100 basis points to go to match 2018 levels. The two year rate was last at 4.35% in November 2018.
Perhaps we can posit that at a 2.57% swap rate, home loan rates have some significant upside. And that the Reserve Bank (RBNZ) may feel it needs to play catchup?
The view of Consumers Price Index inflation certainly shows that the RBNZ's OCR is way behind the eight-ball, reinforcing the upside view, because monetary policy is all about inflation containment now.
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 18, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.10 | 3.85 | 4.25 | 4.35 | 4.75 | 5.65 | 5.85 |
 |
4.19 | 3.79 +0.14 |
4.25 +0.16 |
4.35 +0.20 |
4.89 +0.20 |
5.05 +0.10 |
5.25 +0.06 |
 |
4.09 | 3.85 | 4.19 | 4.35 | 4.65 | 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] | 3.49 +0.10 |
3.39* +0.10 |
4.05 | 4.25 +0.10 |
4.59 +0.04 |
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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