Westpac is the next to raise home loan rates, raising most by about 20 basis points.
As a result, it has the highest or equal highest rates for all fixed rates to three years.
It follows the lead of ASB which raised rates to these new levels on Tuesday.
For a home owner with a $500,000 mortgage, the two-year rate of 4.35% will require repayments of $2,489 per month. Twenty weeks ago at the beginning of July that rate was 2.53% and required monthly repayments of $1983. That difference is now $506 per month. Even in these inflationary times $500 out of most household budgets is a lot. It is not going to be spent elsewhere in the wider economy. And we can't really say it is being recycled into savers accounts in higher interest rates.
Both the Cooperative Bank, and China Construction Bank also raised rates today (Thursday) but not to the levels of ASB or Westpac.
The Reserve Bank (RBNZ) business survey of inflation expectations rose more than expected, underpinning the rising trends in wholesale markets, especially at the short end.
The RBNZ is to review the Official Cash Rate next Wednesday, and Thursday's moves in both wholesale and retail markets are in response to expected RBNZ reactions to rising inflation, and rising inflation expectations.
With both ASB and Westpac having moved up, all others will now follow, probably in short order.
One useful way to make sense of these 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 November 16, 2021 | % | % | % | % | % | % | % |
| ANZ | 4.00 | 3.45 | 3.85 | 4.15 | 4.45 | 5.24 | 5.54 |
 |
4.19 | 3.65 | 4.09 | 4.35 | 4.69 | 4.95 | 5.19 |
 |
3.89 | 3.49 | 3.89 | 4.15 | 4.39 | 4.79 | 4.79 |
 |
3.99 | 3.49 | 4.15 | 4.49 | 4.69 | 4.85 | |
 |
4.19 +0.20 |
3.65 +0.11 |
4.05 +0.16 |
4.35 +0.16 |
4.69 +0.20 |
4.79 +0.20 |
4.95 +0.20 |
| Bank of China | 3.49 | 3.29 | 3.49 | 3.79 | 4.09 | 4.39 | 4.69 |
| China Construction Bank | 3.45 +0.20 |
3.45 +0.20 |
3.65 +0.07 |
4.15 +0.16 |
4.45 +0.20 |
4.95 +0.40 |
5.05 +0.36 |
| Co-operative Bank [*=FHB] | 3.49 +0.15 |
3.29* +0.15 |
3.89 +0.20 |
4.15 +0.16 |
4.49 +0.25 |
4.69 | 4.85 |
| Heartland Bank | 2.90 | 3.45 | 3.60 | ||||
| HSBC | 3.69 | 3.29 | 3.59 | 3.84 | 4.19 | 4.49 | 4.69 |
| ICBC | 3.59 | 3.19 | 3.59 | 3.85 | 4.19 | 4.39 | 4.69 |
 |
3.79 | 3.15 | 3.45 | 3.69 | 3.75 | 4.29 | 4.49 |
 |
3.29 | 3.29 | 3.64 | 3.94 | 4.19 | 4.54 | 4.70 |
Fixed mortgage rates
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85 Comments
Lol RBNZ fked up by moving the rate up to control something they have absolutely no control over, and the banks know it hence higher mortgage rates but no corresponding higher savings rates. Jacking the OCR to 5% is going to do jack except fk the country into the ground as it's a world-wide issue not just NZ. It's like killing yourself to fix global warming :)
The announcements yesterday included flat operating performance which could provide an explanation. Yet a simple price and volume comparison makes it look like someone has entered some big trades in the 7-10 m share volume range. The latest drop looks like they exited a very profitable position but with a lack of orders to hold the price up.
Not odd but shows bit of a weak market for buying the shares.
People are not worried, they are buying tiny houses for multi million dollars in auctions. The pressure is relentless. No one is stopping.
The population doesn't care about the interest rates.they just see that their house will be 30% up in price every year. In 10 years it will be 300%. So why not put all the money into buying the house.
You obviously don't have a large mortgage. I have a $1m mortgage floating in January and it looks like my interest payments will increase by $400 per week. Higher interest rates makes it harder on borrowers to pay the bills while also slowing house price growth (and potentially resulting in house price drops).
Anyone that bought a house 12 months ago via mortgage doesn't own that house. The bank does.
What you do have is a contract to makes you the banks profit slave via mortgage. Payments include an interest component. A component that is rising quickly. Also worth noting that at the artificially lows rates of 2020, an increase of 1-2% from a 3% base is a big difference to what you actually pay. This difference is less as noticeable as a 1-2% increase from 7% base. Interestingly a 6-7% base is looking more and more likely every day.
Your point is correct that there is a large interest component to a mortgage over the total term but can you really hand-on-heart say you'd rather pay someone else's mortgage for your entire life (at NZ rents)? You can't deny the security and stability that owning your home in retirement provides. Over-paying for a piece of crap at high DTI ratio is another matter and is risky though.
The " influential" survey of 35 professional forecasters and business leaders, who also throw in the housing forecasts, seeing through their teal leaves the HPI rising by 5.06 percent over the coming year and on average 3.72 percent over the coming two years. Slightly below their previous, although the 35 forecasts span a fall of -10 percent a nd a rise of 20 percent year on year.
"Heartland says it's the first time the (Reverse Mortgage) limits have been increased since 2004."
The time for borrowing against asset value was....yesterday. And today is probably going to be better than tomorrow.
"Better 3 hours too early than a minute too late"
“While there was low unemployment and most people would be able to adjust, and banks had been testing affordability at 6 or 7 per cent, he questioned whether borrowers had really thought about what it meant to their budgets.”
most have been focused on their gains.... classic!
I think banks should pay their customers for breaking a mortgage for a lower rate to re-fix on a higher one.
As always, only the banks can make money when you deal with them.
If I'm in the market right now for financing, I'll be looking at non banks and alternative financiers.
I guess Banks hike their rates quickly on the way up - and slower on the way down, just like Petrol Stations when price of oil changes.
Since some people may not have even experienced an OCR increase I guess many will have thought it would be same speed on way up as down and are going to be very suprised when they come to refix
David Chaston, why banks or anyone is worried about inflation. Trust Mr Orr who has asserted that inflation is transitory and is saying this since last July so definitely after four quarters - transitory will kick in and next quarter will be normal as was suppose to be transitory unless RBNZ was lying.
Should I be shocked that now the pandemic is effectively over, although government seem intent on trying to squeeze another six months out of it, rates and economic performance are returning to pre-pandemic levels?
The inability to suppress wages by importing low cost labour is accelerating inflation but I have no doubt that once borders reopen tens of thousands will book flights.
This is rear of missing out on the low interest rates that is causing this rapid spike.
People will be trying to fix in droves causing a demand spike this causing a rapid increase in wholesale prices.
With prices of essentials also going up, demand for certainty on mortgages rates will accelerate the drive to fix as it's one thing consumers can control with a shrinking budget.
Does anything matters to people in power...be it inflation.....housing ponzi, as is now not is a problem for FHB but even those who want to rent as rent in Auckland has gone up from 10% to 25% ( A colleagues who was renting for $620 moved house and the same house was re rented for $785).
Government and RBNZ has created a situation in which many average families will struggle for the rest of their lives ( giving dole is not a solution but a tool used by Jacinda Arden - giving $20 extra is to silence ....possible ....)
RBNZ for once should think rationally and take bold move, may be stock market or housing market may react for a short term but if Mr Orr misses this opportunity for........
Below is happening even now, how long will they keep lying that is softening or.......
https://www.stuff.co.nz/life-style/homed/real-estate/127026678/profits-…
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