Mortgage rate change updates

Here's a summary of changes to banks' floating mortgage rates since Wednesday's Reserve Bank 25 basis points Official Cash Rate increase

Personal Finance / news

Here's a summary of changes to banks' floating mortgage rates since Wednesday's Reserve Bank 25 basis points Official Cash Rate increase

25th Feb 22, 10:24am by David Chaston

ASB is the latest bank to raise floating mortgage rates, following ANZ and Westpac. Other banks will follow soon.

Here is an update of the changes so far. This is just a summary; the full tables of all rates and all institutions is here.

Floating rate	Prior	change	New	Effective date for existing borrowers
	%	bps	%

ANZ	4.79	+25	5.04	15 March
ASB	4.60	+25	4.85	9 March
BNZ	4.95	+20	5.15	17 March
Kiwibank	4.25	+25	4.50	14 March
Westpac	5.09	+15	5.24	15 March

Cooperative Bank	4.75	+20	4.95	18 March
Heartland Bank	3.75
HSBC	4.59
SBS Bank	4.79
TSB	4.79

We will update this table as other banks announce their changes.

At the same time all the banks who have changed floating rates have also raised some savings account rates, usually bonus saver accounts.

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6 Comments

by Dgm | 25th Feb 22, 11:01am 1645740101

just love how the narrative has changed so fast... just 3 months ago it was all boom, boom, boom for the housing market... and now all i get to see is.. interest rates rising and housing market slowing..

by Notgreedykiwi | 25th Feb 22, 11:41am 1645742469

Yep 7% not far.

How many multiple million houses be sold in our rich Country where we get paid high salaries.

by Hardly | 25th Feb 22, 2:35pm 1645752935

I’m surprised their haven’t been more fixed rate changes. I haven’t missed them have i? With the higher track for the OCR I thought that would influence those rates.

by jeremyr | 25th Feb 22, 3:08pm 1645754890

I'm waiting for the articles that will say that Russia invading Ukraine will result in a housing boom for us and we need to purchase houses right away.

The reality is it will have no effect, but the articles are going to come.

by CWBW | 25th Feb 22, 4:41pm 1645760515

Not surprise ASB and ANZ are the usual culprits to the fastest in raising rates and slowest in dropping it.

If this continues, shadow banking may come back strong in fashion.

by Whome | 27th Feb 22, 12:36pm 1645918561

With all the talk of the rising OCR impacting on borrowers...

The margin Banks are actually making on floating mortgage rates above the OCR pre GFC days was around 2%.... then it mushroomed to 4% in 2008 (apparently to cover expected losses which were cushioned courtesy of falling interest rates). Their floating rate margin has remained around 4% ever since...

RBNZ say "... only 11% of total loans are on floating rates... " but is that a valid 'excuse' for an excessive 4% margin delivering profit cream on $27+Billion of mortgages? (thats an extra $540M profits compared to charging the standard 2% margin).

RBNZ also pointed out the banks margins are LOWER now than they were pre 2008... and RBNZ pointed to the big banks re Net Interest margins being around 2% however it's easy to 'expense' the gross margin down to what looks like an acceptable level... (ie increase quasi-costs)

I guess a 4% margin on floating loans with a base rate of 1% is not deemed usury...

Banks do appear to have lower fixed rate margins (than the floating margin) however I think these also appear to have had some margin increases since the GFC.

Can anyone explain WHY the margin for Banks has risen so much since 2008?

It's not like they have had to cover significant losses since then.

Also interesting to note since the pandemic they have not reduced their floating rate margin an iota.