It has been five days since ANZ bravely raised their fixed home loan rates - above the general market levels.
Now another major has shifted up too.
But it is Kiwibank, and they have only raise two specific rates, even if they are key ones.
Their one year rate has been raised to match ANZ, up +14 basis points to 3.99%. Their two year rates has also been raised to match ANZ, up +6 bps to 4.55%.
The move is opening up quite a carded rate separation between banks.
These rises come as swap rates rise relentlessly.
Yesterday the one year swap ended at 2.54% and a six year high, and up +24 bps in just the last week. The two year swap was up to 3.01% and the first time it has been above 3% since mid 2015. The two year is up +23 bps in a week.
At the pace of these rises, it seems unlikely any bank will be able to hold back for much longer. After all, the margin between the carded one year rate and the current swap rate at, say, ASB is now a very unusual 125 bps, unusual because it is very rarely this low. For the two year, that same margin is 134 bps, also very low. 'Normally' they hover between 190 bps and 210 bps.
In July 2015, most banks were offering two year fixed rates at 5.0% - a margin to swap of ~200 bps.
| 2yr | margin | 2yr | 2yr | margin | 2yr | |
| fixed | bps | swap | swap | bps | fixed | |
| 3 July 2015 | 3 July 2015 | 3 July 2015 | 15 March 2022 | 15 March 2022 | 15 March 2022 | |
| % | # | % | % | # | % | |
| ANZ | 4.99 | 197 | 3.02 | 3.01 | 154 | 4.55 |
| ASB | 5.10 | 208 | 3.02 | 3.01 | 134 | 4.35 |
| BNZ | 4.99 | 197 | 3.02 | 3.01 | 134 | 4.35 |
| Kiwibank | 4.99 | 197 | 3.02 | 3.01 | 154 | 4.55 |
| Westpac | 4.99 | 197 | 3.02 | 3.01 | 134 | 4.35 |
| -------- | -------- | -------- | -------- | -------- | -------- | |
| Average | 5.01 | 199 | 3.02 | 3.01 | 142 | 4.43 |
| "normal" | "unusually low" |
Later this week (Thursday) the US Fed will be reviewing its rates, and they set the international benchmarks. Overnight markets were of the view US Fed rates were going up and more than +25 bps is now a live possibility.
Yesterday, New Zealand swap rates moved higher as local bond yields responded to the US market shifts. After the overnight action, it seems reasonable to assume New Zealand swap rates will shift higher again.
After all, expectations are widespread that the RBNZ will lean into higher inflationary forces here, and do what they can, even if their actions alone can't stop the rises. But they can slow them.
Kiwibank's rises today haven't come with matching term deposit rises, yet anyway. Update: They have now raised term deposit rates between +10 bps and +20 bps.
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 March 15, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.19 | 3.99 | 4.39 | 4.55 | 4.75 | 5.70 | 5.90 |
 |
4.19 | 3.79 | 4.25 | 4.35 | 4.89 | 5.05 | 5.25 |
 |
4.09 | 3.85 | 4.19 | 4.35 | 4.65 | 4.89 | 4.99 |
 |
4.19 | 3.99 +0.14 |
4.55 +0.06 |
4.79 | 4.99 | 5.15 | |
 |
4.19 | 3.79 | 4.19 | 4.35 | 4.89 | 4.99 | 5.09 |
| Bank of China | 3.85 | 3.65 | 3.95 | 4.15 | 4.45 | 4.85 | 5.05 |
| China Construction Bank | 3.85 | 3.85 | 4.09 | 4.35 | 4.65 | 4.95 | 5.05 |
| Co-operative Bank [*=FHB] | 3.59 | 3.59* | 4.19 | 4.35 | 4.75 | 4.99 | 5.09 |
| Heartland Bank | 3.25 | 3.79 | 4.15 | ||||
| HSBC | 3.94 | 3.75 | 4.15 | 4.25 | 4.49 | 4.74 | 4.99 |
| ICBC | 3.85 | 3.69 | 3.95 | 4.15 | 4.55 | 4.75 | 4.95 |
 |
3.79 | 3.55 | 3.95 | 4.10 | 4.55 | 4.74 | 4.95 |
 |
3.69 | 3.69 | 4.19 | 4.35 | 4.69 | 4.99 | 5.09 |
Fixed mortgage rates
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Daily swap rates
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