BNZ moves some fixed home loan rates up but not by as much as some key rivals. Wholesale rate increases have been driving the shift higher

Now all the big four Aussie banks have followed ASB in raising fixed home loan rates.

BNZ is the latest to do so and their increases have been more modest, but it doesn't give them a rate advantage over Westpac for one key term.

BNZ's carded one year rate rose just +10 bps to 7.09% putting that -10 bps lower than ANZ and -16 bps lower than ASB. But it is +10 bps higher than the new Westpac rate for that term and +20 bps higher than the rate still offered by Kiwibank.

At the two year level, BNZ's increase was +16 bps to 6.75%, positioning them lower than ANZ, ASB and Westpac, but above Kiwibank.

But there are significant further savings to be had by considering challenger banks. You can see the rate savings in the table below, and you can work out the amount you will save in your household budget by using the calculator below.

Wholesale rates have been moving up as the swap rate charts below show although there was a hesitation in the moves up yesterday (Monday). But they remain high and are still an upward pressure on bank lending offers.

Given what has been going on in international bond markets, it is hard to see the end of the current pressure from wholesale rates. But a loss of 'steam' or momentum in the giant US economy could bring some relief. We are seeing that reversal in China but as large as it is, it doesn't dominate international money markets like the US. China is still more of a reactive economy, rather than one that leads interest rate trends.

No-one knows which way wholesale interest rates will move from here, although there are plenty of commentator guesses. Some may strike it lucky, but that is the way with guesses. Unfortunately you are on your own about how future rates will pan out; be sceptical about those who claim to 'know' the future. Your guide should be how resilient your financial situation is; be conservative if you have financial stress now. Perhaps locking in what you know you can afford is a safer strategy, over 'hoping' rates will fall in the future. It might be different if you have plenty of headroom in your financials.

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 own product.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is 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 11, 2023	%	%	%	%	%	%	%
ANZ	7.19	7.19	6.89	6.79	6.49	6.89	6.89
	7.25	7.25	6.95	6.79	6.49	6.39	6.29
	7.15 +0.06	7.09 +0.10	6.89 +0.14	6.75 +0.16	6.49 +0.20	6.29	6.29
	7.15	6.89		6.59	6.29	6.15	6.29
	7.09	6.99	6.89	6.79	6.49	6.29	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*	6.69 +0.10	6.59 +0.14	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