Kiwibank is the next to raise fixed rates - but it has left its one year rates unchanged, still sub-4%.
They follow ANZ and ASB, leaving BNZ and Westpac the final big banks to move up - which will probably now come very soon.
ANZ kicked off this latest round of mortgage rate increases exactly a week ago. ASB chimed in with even higher rates on Friday, April 1, 2022.
Kiwibank's rate increases are of an increasingly steeper nature - although they have left their one year rate unchanged at 3.99%. All other rates have been increased by between +20 bps and +64 bps
We think both BNZ and Westpac will be along soon with their own chunky increases - either today or over the next one or two days.
Driving this is the rise and rise of wholesale swap rates. A quick check of the swap rate chart below paints the picture effectively. They are now rising at their fastest pace since 2013. And also notable, these rises are actually faster than equivalent Government bond rates although their trend is up too. Long term swap rates are flattening off, and long term Government bond rates seem to have topped out. But not short term ones yet, so we are getting rate curve compression locally.
Going forward, it will be worth keeping an eye on what happens in Australia, specifically how the RBA reacts to the flood of election promises released by the Budget in Canberra. There is a heightened possibility the RBA will worry about what has been unleased there and will bring forward its rate increases significantly in their attempt not to be caught behind the eight-ball as inflation there takes off. Inflation in Australia is a curiosity, well below what is being recorded in most other western economies. Any sharp move could trigger a market-moving change. But an argument against it coming pre-election is strong - no central bank governor want to be accused of meddling in the politics of an election. But markets may well move up on the expectation the RBA will have some catching up to do after the event.
And sharp rises in Australia, even from their very low base, will have echoes in New Zealand, even those from the secondary market, well before any from Philip Lowe.
Kiwibank has also raised its term deposit rates from +10 bps to +50 bps. Of note to savers prepared to fix for two years is a 3.20% rate. Their popular six month rate is 2.10%, nine months is 2.25% and on year is now 2.70%.
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.
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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 April 4, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.45 | 4.20 | 4.55 | 4.85 | 5.15 | 5.99 | 6.09 |
 |
4.49 | 4.19 | 4.75 | 4.95 | 5.29 | 5.89 | 5.99 |
 |
4.19 | 3.99 | 4.39 | 4.55 | 4.79 | 4.99 | 5.09 |
 |
4.45 +0.26 |
3.99 | 4.85 +0.30 |
4.99 +0.20 |
5.45 +0.46 |
5.79 +0.64 |
|
 |
4.19 | 3.99 | 4.29 | 4.55 | 4.89 | 4.99 | 5.09 |
| Bank of China | 4.15 | 4.05 | 4.35 | 4.55 | 4.75 | 5.15 | 5.35 |
| China Construction Bank | 4.15 | 3.95 | 4.35 | 4.50 | 4.75 | 5.09 | 5.20 |
| Co-operative Bank [*=FHB] | 3.79 | 3.69* | 4.19 | 4.50 | 4.75 | 4.99 | 5.09 |
| Heartland Bank | 3.49 | 4.05 | 4.25 | ||||
| HSBC | 4.09 | 3.95 | 4.49 | 4.69 | 4.89 | 5.04 | 5.19 |
| ICBC | 3.85 | 3.69 | 3.99 | 4.25 | 4.55 | 4.85 | 5.05 |
 |
3.99 | 3.75 | 4.19 | 4.35 | 4.69 | 4.99 | 5.05 |
 |
3.95 | 3.95 | 4.39 | 4.55 | 4.75 | 4.99 | 5.09 |
Fixed mortgage rates
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Daily swap rates
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