ASB has started the new week pushing through a set of rate hikes for both home loans and term deposits.
However, they did cut their 6 month fixed mortgage rate, by -6 bps to 4.59%, leaving it higher than their main rivals but matching the Kiwibank rate for this short fixed term.
Update: Kiwibank has also changed their rates.
For one year and eighteen months fixed, they raised rates +10 bps. And that means they now have the highest rates in the market for those terms.
For two years, they raised their rate by +20 bps, to 4.95%.
And for three years, their rate is up +10 bps to 5.19%.
Both of these are also the highest in the current market.
They didn't raise 4 and 5 year rates this time, but they did that recently.
On the term deposit front, they have raised rates too. For nine and 12 months, their rate is up +5 bps. For 18 months it is up +15 bps. And for 24 months it is up +35 bps to 4.00%. They have also raised longer rates. But all these TD increases just bring them up to where their main rivals have already settled, so none are especially attractive in the current market.
ASB's changes follow last week's changes by Westpac, ANZ and Westpac, although they have settled on positions in the mortgage market that are above these rivals. They will be hoping others follow, soon.
Update: Kiwibank has changed its home loan rates, and its term deposit rates too. They now have the market highest 3 year rate.
To compare mortgage rate offers in a way that includes the application and account fees costs (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement, or other incentive, you can use our home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.
Negotiate. How flexible banks may be will depend on the strength of your financials.
One other useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is here.
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. Break fees will be minimal in a rising market. But they become important in a falling market, like now.
Here is the 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 February 9, 2026 | % | % | % | % | % | % | % |
| ANZ | 4.49 | 4.49 | 4.69 | 4.89 | 5.19 | 5.89 | 5.99 |
 |
4.59 -0.06 |
4.59 +0.10 |
4.75 +0.10 |
4.95 +0.20 |
5.19 +0.10 |
5.55 | 5.69 |
 |
4.49 | 4.49 | 4.64 | 4.69 | 5.09 | 5.55 | 5.69 |
 |
4.49 -0.10 |
4.49 | 4.89 +0.20 |
5.25 +0.10 |
5.69 +0.20 |
5.79 +0.20 |
|
 |
4.49 | 4.49 | 4.69 | 4.89 | 5.15 | 5.39 | 5.49 |
| Bank of China | 4.38 | 4.48 | 4.48 | 4.58 | 4.88 | 5.28 | 5.28 |
| China Construction Bank | 4.79 | 4.49 | 4.49 | 4.54 | 4.90 | 5.10 | 5.20 |
| Co-operative Bank | 4.65 | 4.49 | 4.69 | 4.79 | 5.09 | 5.29 | 5.49 |
| ICBC | 4.69 | 4.39 | 4.49 | 4.59 | 4.99 | 5.09 | 5.19 |
 |
4.69 | 4.49 | 4.69 | 4.69 | 5.09 | 5.29 | 5.29 |
 |
4.69 | 4.49 | 4.75 | 4.69 | 5.09 | 5.29 | 5.49 |
Fixed mortgage rates
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Daily swap rates
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18 Comments
Loving the upward pressure on Term Deposit rates.
First bank to touch the holy grail that is the 1-year term. Others will follow.
Are the banks trying to twist the RBNZ's arm for another rate decrease?
I wonder why the market thinks the RBNZ is going to increase the OCR? It has mostly been in the 1.5% - 3% range between 12 March 2009 and Covid, 2.25% is probably about average. https://www.rbnz.govt.nz/monetary-policy/monetary-policy-decisions
Are you using the post GFC period as a sample of 'normal monetary policy' as a basis to make judgement or comparison from? When through the history of interest rates, over hundreds (even thousands) of years, such low rates are an extreme anomaly, not the normal.
Comparing to the post GFC period and saying 'hey look at where interest rates were then, we should just expect more of the same' could be a very faulty heuristic to view the issue from.
Most central banks are sticking to 2% inflation targeting so unless that changes you'd expect interest rates to sit roughly above it.
talk is of widening the band......
2% is the average, but the bands can move either side of that.
Probably all irrelevant if the global economy goes sideways/backwards.
Then again interest rates wont be people's main concern in such an environment.
Obviously there are many variables that determine the level of inflation that gets measured in the CPI. If we cease importing deflationary forces from cheap labour in Asia for many of our products and services - ie the past 30 years, then it is possible that just to sustain 1-3% inflation, we may need the OCR much much higher than 2%.
Just as how in order to create inflation (the problem in recent decades) because we were importing deflation from offshore, then we needed very low rates at or around the same level of measured CPI inflation (ie less than 5%). Which caused lower lending rates, which increased aggregate demand, which help contain the falling level of consumer inflation but caused a huge spike in asset prices - eg housing going up 7% pa while general inflation was much lower than that.
My bet is this cycle reverses over the coming years and decades as nations realise they need to control their own manufacturing base as the globalist system of recent times weakens.
I may make superannuation my deciding factor in the upcoming election. Its getting ridiculous that everyone younger than the boomers have no idea what kind of pension they will be entitled to. How can we possibly save for it when we have no idea what the government will contribute.
Currently National is winning, because at least they have some kind of policy. I am guessing that if Kiwisaver is going to 12% then super will be means tested like the Aussies, although it would be nice if they spelled out how and when. Although a vote for National is effectively a vote for the Winston superannuation handbrake so it would be another 3 years of nothing unless he croaks it.
If Labour continue with the idea that NZ super is affordable at 65, that is utter lies IMO. Same with NZF and the greens.
The ACT party probably have the best policy, but I don't think I can vote for them TBH.
Phase out Nation Superannuation completely. Phase in a muscular universal Kiwisaver. Starting last week
That is one option. Of course it means that my generation will pay for our own pension (Kiwisaver) and our parents and grandparents pension (NZ super), which is a pretty big ask really.
Maybe it could be phased in a way where no one generation gets completely screwed. For example keep the Kiwisaver age at 65, but lift the NZ super age continuously until it is eventually phased out. Maybe raise it by 1 year every 4 years or something.
I'm in my 40s and trying to save via KS and other pots. I can see a scenario where in 20 years time they decide to asset and income test, so then I will need to use KS to live on. But those with low to no KS will be able to access full pension and that will be called "fair". Also will be "fair" that the last boomer will shuffle on before asset or income testing starts.
Also will be "fair" that the last boomer will shuffle on before asset or income testing starts.
The voter base below them will be far too big I'd say, so more likely to come into play sooner, however this requires mobilisation to the voting booths on election day which the youth still aren't spectacular at.
It's an aging population so the point where there's more young than old voters is far away, if ever. Today's Millennials are hardly going to vote against getting super when they're in their 50s.
And thats how the bulls get penned with a down side of becoming hamburger. Its the bottom of the market, rates are low, buy now!!!! Only to be set up to be crushed by less renters, higher rates, higher debt, and higher rates from idiot councils. Wellington 2021 is a classic example.
Bull Trap.
Thin spread though. Only 110 points between 6 months and 5 years.
Yes it's weird. Also noted ANZ floating 5.79 and 5yr fixed 5.99. Doesn't make sense to me.
I'm thinking the market has a dollar each way. They're not yet convinced that rising rates are here to stay.
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