The Red Bank raises fixed home loan rates across the board, and tweaks two short-term term deposit rates higher, moving up into rate space provided earlier by ASB and other rivals

The week has started with Westpac raising all its fixed home loan rates, and two term deposit rates.

These home loan rate changes put them mid-pack among the main banks, no longer the lowest one year or 18 month in this group, and now the highest carded rate (with ANZ) for two years.

Outside these post popular terms, Westpac still shines for a five year fixed rate, but closed up that advantage with a chunky 26 basis points rise to 6.65%.

At the same time Westpac has raised its six month term deposit rate for savers five basis points to 6.00%, which is just a catchup to main rivals. However it has launched a 6.10% eight month offer, which is the same as offered by ASB and Kiwibank for nine months, and not too far away from the 6.15% offered by a few challenger banks for nine months.

Westpac last tweaked its term deposit rate offers less than a week ago.

Westpac's rises in themselves aren't market leading, but they do add to the momentum of rate rises by all banks, large and small, responding to the background pressures coming from global uncertainty, rising wholesale rates, and general inflationary pressures. Still, financial markets are no longer seeing the Reserve Bank (RBNZ) raise rates any further and market pricing has removed almost all premiums for that. But global pressures remain and that background is doing the RBNZ's job for it. There is little indication yet that we are at the top of this current cycle.

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 October 31, 2023	%	%	%	%	%	%	%
ANZ	7.35	7.39	7.15	7.09	6.89	7.34	7.34
	7.45	7.45	7.15	7.05	6.85	6.75	6.69
	7.39	7.25	7.09	6.99	6.85	6.75	6.75
	7.25	7.25		7.05	6.89	6.79	6.79
	7.29 +0.10	7.35 +0.10	7.15 +0.06	7.09 +0.10	6.85 +0.16	6.75 +0.16	6.65 +0.26
Bank of China		6.99	6.99	6.89	6.69	6.49	6.39
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.25 +0.10	7.25 +0.10	7.15 +0.10	7.05 +0.06	6.85	6.85	6.85
Heartland Bank		6.99	6.89	6.85	6.65
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.55	7.55	7.25	7.15	6.79	6.79	6.79
	7.19	7.19	7.19	6.99	6.85	6.75	6.69