As the chart below shows, wholesale swap rates have taken off higher again, accelerating up faster. They are now at seven year highs.
And now banks are forced to respond with matching mortgage rates that are sharply higher too.
The first to move out of their uncomfortable position is market heavyweight ANZ, which now has no carded mortgage rate offers under 4%. We haven't seen that for three years, last in March 2019 for any bank.
Plus they now have rates starting above 6%. No bank has had any rate that high since August 2018.
Back then, rates were falling. Now we are just getting started on the rises. And the rises are coming quickly now. Don't forget we had a 2.90% fixed rate offer in the market just 120 days ago.
Not only have ANZ moved, challenger banks have too. On Monday Heartland Bank, China Construction Bank, and TSB all raised fixed rates.
Wholesale swap rates have been climbing relentlessly recently. And with US Federal Reserve policy rate increases now seemingly locked in the background policy rate direction is clear.
It won't be long before other banks join ANZ with rate cards that have a 6% set.
We should also note that ANZ has raised their term deposit rates sharply too. Most are up between +10 basis points and +30 bps in a steepening of the rate curve.
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.
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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 March 29, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.45 +0.26 |
4.20 +0.21 |
4.55 +0.16 |
4.85 +0.30 |
5.15 +0.40 |
5.99 +0.29 |
6.09 +0.19 |
 |
4.49 | 3.99 | 4.54 | 4.69 | 5.25 | 5.60 | 5.80 |
 |
4.19 | 3.99 | 4.39 | 4.55 | 4.79 | 4.99 | 5.09 |
 |
4.19 | 3.99 | 4.55 | 4.79 | 4.99 | 5.15 | |
 |
4.19 | 3.99 | 4.29 | 4.55 | 4.89 | 4.99 | 5.09 |
| Bank of China | 3.95 | 3.85 | 4.15 | 4.35 | 4.55 | 4.85 | 5.05 |
| China Construction Bank | 4.15 | 3.95 | 4.35 | 4.50 | 4.75 | 5.09 | 5.20 |
| Co-operative Bank [*=FHB] | 3.79 | 3.69* | 4.19 | 4.50 | 4.75 | 4.99 | 5.09 |
| Heartland Bank | 3.49 | 4.05 | 4.25 | ||||
| HSBC | 4.01 | 3.95 | 4.29 | 4.45 | 4.65 | 4.89 | 5.04 |
| ICBC | 3.85 | 3.69 | 3.99 | 4.25 | 4.55 | 4.85 | 5.05 |
 |
3.99 | 3.75 | 4.19 | 4.35 | 4.69 | 4.99 | 5.05 |
 |
3.95 | 3.95 | 4.39 | 4.55 | 4.75 | 4.99 | 5.09 |
Fixed mortgage rates
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Daily swap rates
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