Westpac has now followed ANZ with some ~+30 bps mortgage rate rises of their own.
They have matched ANZ at 5.45% for the one year fixed rate, but have set a lower benchmark for 18 months and two years.
And they have declined to follow ANZ for the three year rate up, leaving their rate at 5.65% and -30 lower than ANZ's rate for that fixed term.
In fact, Westpac is now (and still) the most competitive of any of the big banks for three years fixed.
Will other banks move up? It isn't certain they will, but it does seem likely.
Today's US Fed signals probably don't shift wholesale money rates any further. And the Spring real estate market seems stuck in the Winter mud. That makes most activity happening in the mortgage market in the zero-sum refinance sector.
On the term deposit side, Westpac also raised rates, and like ANZ they aren't to levels that are very special in the current market. Westpac's new six month rate offer is 3.30%, its nine month rate 3.50% and its one year offer 4.10%. None of these are particularly distinctive even if they are more competitive than they were.
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 although break fees should be minimal in a rising market, they will start to bite in a falling 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 September 23, 2022 | % | % | % | % | % | % | % |
| ANZ | 5.50 | 5.45 | 5.65 | 5.75 | 5.95 | 6.85 | 6.95 |
 |
5.15 | 5.15 | 5.35 | 5.45 | 5.69 | 5.79 | 5.79 |
 |
4.99 | 5.15 | 5.49 | 5.39 | 5.69 | 5.89 | 5.99 |
 |
5.45 | 4.95 | 5.45 | 5.69 | 5.89 | 5.99 | |
 |
5.35 +0.30 |
5.45 +0.30 |
5.55 +0.20 |
5.65 +0.20 |
5.65 | 5.75 | 5.75 |
| Bank of China | 4.95 | 5.25 | 5.25 | 5.45 | 5.65 | 5.65 | |
| China Construction Bank | 5.50 +0.51 |
5.45 +0.30 |
5.65 +0.36 |
5.75 +0.30 |
5.95 +0.26 |
6.85 | 6.85 |
| Co-operative Bank [*FHB special] | 4.89 | 4.79* | 5.39 | 5.39 | 5.69 | 5.79 | 5.89 |
| Heartland Bank | 4.79 | 5.15 | 5.14 | ||||
| HSBC | 5.04 | 5.09 | 5.19 | 5.24 | 5.44 | 5.64 | 5.64 |
| ICBC | 4.99 | 4.95 | 5.15 | 5.25 | 5.69 | 5.89 | 5.99 |
 |
4.95 | 4.89 | 5.35 | 5.29 | 5.49 | 5.79 | 5.79 |
 |
4.89 | 4.69 | 5.19 | 5.29 | 5.55 | 5.65 | 5.65 |
Fixed mortgage rates
Select chart tabs
Daily swap rates
Select chart tabs
Comprehensive Home Loan Calculator
38 Comments
At this point I would have thought banks would be looking to start ratcheting things down before owners equity disappears and it becomes the banks problem.
I would have thought they would have models telling them who to ditch and where.
But I'm guessing that because house prices only rise there will be no plan.
I would guess that as long as the mortgage payments are being made, the equity is meaningless until it comes time to refix (is there scrutiny if rolling off fixed to floating - I have no idea?).
Can a bank 'ditch' a customer who isn't behind on their mortgage payments (regardless of equity) - or are they stuck with them and thus are trying to attract better positioned clients through attractive interest rates given out to select people (which is how I read the prior short-term rate drops)? I.e., is ANZ trying to lose poorly positioned clients by keeping rates higher than most of the others, and hoping they'll jump ship meanwhile rates are negotiable for clients they don't want to lose?
It doesn't matter what anyone wants to do if they can't.
The ability to effect a transaction is going to deteriorate as time goes on. It's what we needed all along, without the Big Stick of interest rate rises. But we chose otherwise. So rather than what should have happened, we are now being treated to what will happen. Interest rate rises are going to suck the daylights out of our capacity to take on new loans until we learn that productive effort, not speculation, is the way to run our economy.
True that, finance is not an option for many and this will be a larger group through the cycle, the intent and demand is still out there.
The idea we are going to switch to a more productive economy.. rather than speculative, that is a cultural change and a good generation away.
It's important to note that many or all of those rates in the table are based on having a 20% deposit.
Many FHBs struggle to hit the 20% mark, that would mean they are looking at at least 6.35% for a 2 year loan, rather than 5.75%, at ANZ as an example.
6.35% is close to the rate I was stress tested at 2.5 years ago when buying.
Raising a deposit is slowly getting easier with higher interest rates on savings and falling house prices.
Still a mammoth task though thanks to our still insanely high prices. An Auckland deposit will almost buy you a house in some parts of the UK (and the UK is not really known for cheap houses, I just happen to be familiar with it)
About 10 years ago tsb advertised a nz only 10 year rate 5.95%. Seemed like a great deal. Interest rates pretty much only fell afterwards. ( until very recently). so it can go both ways.
I view locking in long term as insurance. if things are tight it can be a great idea as you simply can’t afford for rates to rise too much.
Likewise. Locking long and seeing rates fall is the lesser of 2 evils. I'm already climatized to the fixed outgoings, so falling rates is missing out on money that I am not otherwise seeing.
Locking short on the other hand and refinancing to higher rates, can generally mean forgoing something.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.