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ANZ raises its fixed home loan rates sharply, after passing on the full +50 bps rise in their floating rate. Their fixed rates rose between +20 bps and +40 bps too. Their rivals are sure to follow soon

Personal Finance / analysis
ANZ raises its fixed home loan rates sharply, after passing on the full +50 bps rise in their floating rate. Their fixed rates rose between +20 bps and +40 bps too. Their rivals are sure to follow soon

The recent sharp rises in wholesale swap rates, plus Wednesday's +50 bps OCR increase, has set in motion a comprehensive round of sharp increases in fixed home loan rates.

Some banks are still playing catch-up from the earlier wholesale rises, but ANZ is leading from the front with across-the-board fixed rate increases as well as a full +50 bps pass-through of the OCR hike.

These new ANZ rates will set the tone of what is sure to follow from their rivals.

All the increases are chunky with rates starting with a "2" or a "3" soon to become distant (if just fond) memories.

At the long end, rates starting with a "7" now seem plausible. Recall the next RBNZ rate review is with a full Monetary Policy Statement at the end of May.

And next week the New Zealand consumer price inflation data for March isn't likely to undershoot on April 21, 2022. So the full-court press against inflation that the RBNZ seems committed to may have some time to play out before victory can be declared. There will be costs across the whole economy as this builds.

At the same time, term deposit rates are rising, and ANZ raised all their offers today as well.

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 April 14, 2022 % % % % % % %
               
ANZ 4.65
+0.20
4.55
+0.35
4.90
+0.35
5.25
+0.40
5.55
+0.40
6.35
+0.36
6.45
+0.36
ASB 4.49 4.19 4.75 4.95 5.29 5.89 5.99
4.19 3.99 4.55 4.69 5.25 5.60 5.80
Kiwibank 4.45 3.99   4.85 4.99 5.45 5.79
Westpac 4.39 3.99 4.49 4.79 5.09 5.39 5.69
               
Bank of China  4.15 4.05 4.35 4.55 4.75 5.15 5.35
China Construction Bank 4.15 3.95
+0.30
4.35
+0.15
4.50
+0.40
4.75
+0.45
5.09
+0.56
5.20
+0.70
Co-operative Bank [*=FHB] 3.89 3.79* 4.49 4.79 4.99 5.45 5.79
Heartland Bank   3.49   4.05 4.25    
HSBC 4.09 3.95 4.49
+0.05
4.69
+0.10
4.89
+0.30
5.04
+0.35
5.19
+0.50
ICBC  4.15 3.99 4.35 4.50 4.85 5.05 5.25
  SBS Bank 4.49 3.99 4.39 4.55 4.69 5.19 5.55
  3.95 3.95 4.39
+0.16
4.55
+0.30
4.75
+0.24
4.99
+0.46
5.09
+0.56

 

Fixed mortgage rates

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Daily swap rates

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Opening daily rate
Source: NZFMA
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Source: NZFMA
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Source: NZFMA
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Source: NZFMA
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Comprehensive Mortgage Calculator

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13 Comments

Its Crazy. Biggest hike in 22 years in the OCR.

Whitu % interest rates this year.  GUARANTEED.

Up
6

Wow, these are significant rate rises.  

In many ways, these rises are the reason why the RB had to hike by 0.5%, because if they hadn't, wholesale rates would have dropped and banks would have kept their rates "as is", thus achieving nothing.

Up
3

Well done Yvil. I see you did predict a 50bps increase in the OCR .

Not good HouseLouse. I see you predicted a 25bps increase in the OCR.

Well done me. I predicted a 50bps increase in the OCR.  ( but I must give Carlos67 a shout out for his help. )

Up
3

With such amazing market predictions when are you inviting us for a party on your mega yacht?

Up
1

He's probably too young to have received that much free money.

Up
2

Remember 2021, when we all thought that the RBNZ controlled interest rates?

Up
2

Keep milking 

Up
0

Seems Orr should have waited until he had the inflation data due next week,  if the data shows a significant increase he is further behind the ball than he may realize. Anecdotally and from my own experience in the last month or so it appears prices are out of control,  I wouldn't be surprised if the inflation figure is higher than we all suspect. 

Up
2

Observing Orr at work is like watching six year olds play soccer - they just think about where the ball is, never considering where the ball is going to be.

Up
3

So the ANZ 1 year rate is a 300% markup on the Oct rate. Most businesses would give their left ball for that. More branch closures,Anda record profit on the way,no doubt.

Up
2

Those TSB rates are wrong. Pretty sure they didn't drop rates last night...

Up
0

ANZ flexible home loan interest rate is now 5.65%, up 0.5%.

Interest on a $500,000 home loan is $28,250 p.a.

Weekly interest is $543, which is $48 more per week.

Another 4 OCR hikes of 0.5%, works out to be $735 per week, interest portion only.

Debt trap.

 

Up
0

Did Mr Luxon say that he will reverse the tax on properties if he wins. That will be end 2023 or early Jan 2024.

Legislation would be passed in 2025.

Can existing landlords (before March 2021)  hold on to their properties. Yes.

New landlords? Some a yes, others a no.

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0