Well, that did it.
A much higher than expected Q3-2022 CPI inflation level has turbocharged interest rate markets.
And those pressures have spilled over into sharply higher fixed mortgage rates.
The first to move is ANZ, adding between +34 basis points and +55 bps to its fixed rate card.
ANZ's two year rate is now over 6%, well over, and this is the first time it has been this high since November 2011.
In fact, their virtual-6% one year rate is its highest since February 2011.
ANZ has also raised term deposit rates as well, by between +15 bps and +75 bps. That results in its six month rate rising to 3.60% and one year rate rising to 4.30%.
The last time ANZ one year TD rates were at this level was in February 2015.
(ANZ's +75 bps term deposit rise was for their five month offer, but that only raises it to 3.00%, so more of a curve correction than a significant increase).
As ANZ is New Zealand's largest retail bank, it's rate positioning has market influence. There seems little doubt all its rivals will follow. The only question will be when.
From a borrower's point of view, those who were on a two year fixed rate two years ago are going to find the transition tough. In mid October 2020 the two year fixed rate from ANZ was 2.55%. That rate today is now 6.19%. If they took out a $580,000 mortgage in October 2020 (being 80% of the national median house price then of $725,000, their weekly payments will be rising from $532 over the past two years to $818 per week for the next two years. That is a +$286/week jump, or +54%. In anyone's budget, that will hurt.
One useful way to make sense of the 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 October 19, 2022 | % | % | % | % | % | % | % |
| ANZ | 6.05 +0.55 |
5.99 +0.54 |
6.09 +0.44 |
6.19 +0.44 |
6.29 +0.34 |
7.19 +0.34 |
7.29 +0.34 |
 |
5.50 | 5.45 | 5.65 | 5.75 | 5.95 | 6.09 | 6.09 |
 |
5.49 +0.14 |
5.45 | 5.59 +0.04 |
5.69 +0.10 |
5.89 +0.20 |
5.99 +0.10 |
5.99 |
 |
5.45 | 5.39 | 5.65 | 5.89 | 5.99 | 5.99 | |
 |
5.45 | 5.45 | 5.65 | 5.75 | 5.75 | 5.85 | 5.85 |
| Bank of China | 5.25 | 5.35 | 5.45 | 5.65 | 5.85 | 5.85 | |
| China Construction Bank | 5.50 | 5.65 | 5.65 | 5.95 | 5.95 | 6.85 | 6.85 |
| Co-operative Bank [*FHB special] | 5.35 | 5.25* | 5.65 | 5.75 | 5.95 | 6.09 | 6.09 |
| Heartland Bank | 5.09 | 5.45 | 5.49 | ||||
| HSBC | 5.29 | 5.39 | 5.54 | 5.59 | 5.79 | 5.89 | 5.99 |
| ICBC | 5.35 | 5.25 | 5.35 | 5.45 | 5.69 | 5.89 | 5.99 |
 |
5.29 | 5.29 | 5.45 | 5.49 | 5.75 | 5.79 | 5.79 |
 |
5.25 | 4.99 | 5.45 | 5.49 | 5.59 | 5.75 | 5.75 |
Fixed mortgage rates
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Daily swap rates
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