Kiwibank has raised its one year fixed mortgage rate to 5.80% from 5.65%, which leaves TSB as the bank with the lowest one-year mortgage rate.
Kiwibank introduced a one year special rate on August 9 that it called a "Hot August Home Loan Special" and specified the special rate would expire at the end of August.
Kiwibank's new one-year rate is now 5.80%, which brings it closer to the 5.95% offered by ANZ, BNZ and Westpac and the 5.90% offered by ASB.
Fixed mortgage rates are often closely connected to wholesale interest rates set in the 'swaps' markets.
One year swaps rates have risen from a low of 2.72% on March 17 to 3.19% now, although they are off their 2011 high of 3.38% set on July 29.
Fears about a European and US recession saw the one year rates drop to 2.92% by August 10, although it has bounced back somewhat in the last two weeks.
See our interactive average bank mortgage rate chart here.
See our interactive swaps rates below.
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4 Comments
@ Bernard
One begins to wonder if the cross currency basis swap market window is closing or closed for NZ banks seeking cheap USD funding.
The cost was a significant ie ~ -90bps versus the Euro for European banks a week or so ago.
I have no access to current term rates for the NZD/USD pair.
Maybe you could check and note if quotes in this market are even liquid at the moment.
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