Now both ANZ and Westpac have joined ASB in pushing up some key fixed home loan rates. Except, ANZ actually reduced its standard 4 and 5 year rates to be more competitive.
And like ASB, ANZ has raised their term deposit offers at the same time, especially for terms over 1 year. But Westpac has not - yet.
On the mortgage front, ANZ has chosen carded levels lower than ASB for its 1 year rate. Westpac chose carded levels lower than ASB for its 18 month rate.
For their two and three year rates, the three banks are now aligned with the same offer rates.
So for a short while at least, both BNZ and Kiwibank will be offering lower rates among the main banks.
Wholesale rates have been moving up as the swap rate charts below show. In fact today (Thursday), the key two year swap rate hit its highest level since November 2008.
Given what has been going on in international bond markets, it is hard to see the end of the current pressure from wholesale rates. Those who have guessed rates would be dropping by now have not guessed well.
Obviously you should negotiate and shop around. Most banks will discount their carded rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's ownn product.
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 July 7, 2023 | % | % | % | % | % | % | % |
| ANZ | 7.19 +0.20 |
7.19 +0.20 |
6.89 +0.14 |
6.79 +0.30 |
6.49 +0.20 |
6.89 -0.30 |
6.89 -0.20 |
 |
7.25 | 7.25 | 6.95 | 6.79 | 6.49 | 6.39 | 6.29 |
 |
7.09 | 6.99 | 6.75 | 6.59 | 6.29 | 6.29 | 6.29 |
 |
7.15 | 6.89 | 6.59 | 6.29 | 6.15 | 6.29 | |
 |
7.09 | 6.99 | 6.89 +0.14 |
6.79 +0.20 |
6.49 +0.20 |
6.29 +0.10 |
5.99 |
| Bank of China | 6.79 | 6.59 | 6.39 | 6.09 | 6.09 | 6.09 | |
| China Construction Bank | 6.76 | 6.70 | 6.59 | 6.55 | 6.40 | 6.40 | 6.40 |
| Co-operative Bank [*FHB special] | 6.79 | 6.55* | 6.59 | 6.45 | 6.29 | 6.29 | 6.29 |
| Heartland Bank | 6.40 | 6.45 | 6.20 | 5.95 | |||
| HSBC | 7.09 | ||||||
| ICBC | 6.75 | 6.59 | 6.49 | 6.29 | 6.09 | 6.09 | 6.09 |
 |
6.99 | 6.99 | 6.84 | 6.59 | 6.29 | 6.59 | 6.69 |
 |
6.99 | 6.99 | 6.75 | 6.49 | 6.39 | 6.29 | 6.29 |
Fixed mortgage rates
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Daily swap rates
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Comprehensive Home Loan Calculator
48 Comments
Nah come on, only in mortgage lending is it 100% borrower beware.
You can be conned into buying the cheapest lowest quality fridge on the market, and despite knowing it's rubbish and won't last, the Consumer Guarantees Act has got your back.
The bank has no obligation whatsoever to use their wealth of lending experience and data to consult with their clients, making them aware of potential long term risks. Infact, the banks are deserving of sympathy for being conned by their sub-prime borrowers.
Why would anyone be so far into cuckooland as to think that ethics and morals have anything whatsoever to do with the Aussie banks? They are all a bunch of dishonest, profiteering, cheap crooks on high wages with fat bonuses for the bosses. As the BNZ staffmember said to me when I shut my accounts with them to use only kiwi owned banks, " I don't know why anyone banks with us!".
Economists are paid very well - to get their predictions wrong again and again. HM is not an economist, neither am I.
Calling out "professionals" for doing an absolute ratsh1t attempt at their job is not hypocritical.
Your comment reminds me of all the pearl clutching that was going on during Covid. With loads of folks screaming down anyone who dared to question the govt or "experts" based on the data. And look where that got us.
Keenly awaiting the inquiry by the Royal Commission into the COVID response. Wondering what will be the NZD impact if it actually brings out the backdoor conversations and rational behind decisions made instead of a lighthearted waffle that breezes over govt culpability that we all expect it to be.
Not sure anyone would expect it to be anything than a complete waste of time. It would change nothing if another Pandemic came along next year because we have changed nothing. Its not like we have built a dedicated quarantine facility that's now ready to go and frontline nurse and doctor numbers continue to decline instead of increase along with the hospitals in slow decay. If you need an inquiry to tell you the obvious, the labour government is even worse than I thought.
It was mostly inflation which was running in the 4-5% range from memory. 5 years of 5% pay rises makes a big difference. Of course house prices were much lower and interest rates much higher.
The main issue at the moment is that interest rates have gone up so much. When we bought we fixed for 5 years so that didn’t matter, which is probably a sensible thing for any FHB to do.
But I’m not saying now is a good time to buy, house prices are still way too high compared to interest rates.
So inflation isn’t so good is it? Salaries (for some) are rising significantly, but so is the cost of debt and wider cost of living.
And the wage-price spiral just perpetuates the inflation problem.
Of course for some (low or no mortgage debt, no dependents etc) with good pay rises, it’s probably quite a good time financially. Winners and losers etc etc. My son for example, has had two years of great pay rises. No dependents and his rent has hardly risen at all. Cycles to work and to shops etc so not impacted much by fuel price rises.
But plenty are getting slammed right now.
Yeah was talking to my broker who told me about Tony’s not so public other business. Also was saying he’s got quite a few clients asking banks about going IO and mortgage holidays. Apparently banks are being more open to the idea (assuming you have equity) than they were after GFC.
The contractionary momentum in the economy is clear, and I think the RBNZ will begin cutting by the Feb-24 meeting. It could even happen as early as November, once the election is in the rear view mirror, but I'm not sure the labour market will respond quickly enough to provide the hard data to prompt that move. An early cut is perhaps more likely to be initiated by some form of financial distress (aggressive growth in non-performing loans?), than a weighing of inflation against growth, but your guess if and when that happens is as good as mine.
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