(Updated with corrections to TSB Bank and SBS rates.)
BNZ has now followed most of its main rivals by raising fixed home loan rates.
The increases are across the board from 1 year fixed to their 7 year fixed rate.
Their Classic one year fixed rate is now 5.39%, up 44 bps from 4.95%. Even at that rate it is lowest of the main banks for one year, although TSB still has a 4.95% rate.
BNZ's Standard two year rate has risen to 6.29%, a jump of 34 bps from 5.95%.
Their Classic three year rate is now 6.39%, up 40 bps from 5.99%.
The increases in their four and five year rates take them to the levels where the other main banks are.
BNZ also offers a seven year fixed mortgage rate and this has jumped to 7.85%, up 25 bps from 7.60%.
For borrowers who do not have at least 20% equity in the property provided as security, their high LVR rates remain 50 bps above the main interest rates, and a low equity interest premium applies to all new or existing lending.
These rises by BNZ follow moves by other banks just prior to Christmas. They also follow some decent hikes in wholesale swap rates.
The RBNZ has signaled that it will probably raise its benchmark OCR rate in 2014. The next review is in the final week of January and markets are currently pricing in a 40% chance of an OCR hike then. Most bank economists however see the regulator just issuing a final signal at that time, preferring to wait until the Monetary Policy Statement in March to actually make the move up.
The expectation is that 2014 will bring a number of rises, to bring the current 'low rates' back to 'normal' levels.
At the same time, BNZ has raised it term deposit rates for terms of one to five years, although these rises were a little smaller, ranging from 10 bps for one year and 18 months, to 35 bps for two years. The TD rate changes bring them into line with the other big banks.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
5.49% | 5.85% | 6.29% | 6.60% | 7.20% |
| BNZ | 5.39% | 5.80% | 6.29% | 6.39% | 7.20% |
| Kiwibank | 5.45% | 5.95% | 6.40% | 6.90% | |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
| Co-op Bank | 5.19% | 5.85% | 6.25% | ||
 |
5.39% | 6.29% | 6.55% | 7.20% | |
| SBS / HBS (corrected) | 5.35% | 5.60% | 5.80% | 6.10% | 6.70% |
| TSB (corrected) | 5.35% | 5.65% | 5.95% | 6.40% | 7.20% |
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9 Comments
Only two days ago you reported swaps closing lower! http://www.interest.co.nz/bonds/67984/rbnz-review-gets-closer-expectations-ocr-rise-january-diminish
Bank economists have been predicting rate rises for months. Now they are moving lending rates upwards early before people realise that significant OCR rises will not be happening in 2014/15.
These adjustments are just a removal of the discounts offered over the last 12 months.
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