(Updated at 12 noon: HSBC also raises fixed rates.)
Westpac is the latest major bank to raise longer term fixed mortgage rates, following recent rises in wholesale rates.
At the same time it has adjusted and expanded its 'Capped rate' offer.
The increases announced by Westpac today set its carded rates as among the highest for any big bank for terms of 2 years and greater.
It has raised its two year fixed rate to 5.65%, up 15 bps from 5.50%.
Its three year fixed rate is now an oddly priced 6.04%, up 14 bps from 5.90%.
For four years, their fixed rate is now 6.30%, up by 15 bps.
And for five years their new rate is 6.60%, higher by 25 bps.
Westpac has also made some changes to its Capped rate offers. Capping the interest rate on your home loan means you’ll pay less interest if rates fall. But if rates do go up, your interest rate doesn't go higher than the capped rate. The new 'caps' are 5.49% for one year and 5.85% for two years.
Westpac General Manager of Retail, Ian Blair, said "Capped rates offer customers the chance to lock in the maximum rate they will pay over the duration of the term of their loan. They marry the benefits of rate certainty and repayment flexibility for customers. These two rates are extremely competitive and are a good option for home buyers."
A home owner taking the capped product will pay the lower of either the current floating rate or the capped rate for the chosen term (1 yr 5.49% p.a. 2 yr 5.85% p.a.). On this rate home owners can also choose to pay down more of their loan without incurring a break cost.
UPDATE: HSBC has also raised its Premier fixed mortgage rates today, notably pushing their market leading 4 year fixed rate of 5.99% up by 16 bps to a new rate of 6.15%.
It has raised its 2 year rate to 5.50% from 5.35%, its three year rate to 5.90% from 5.75%, and its five year rate to 6.40% from 6.20%.
Earlier this week, Kiwibank raised longer term fixed mortgage rates as well.
See all advertised mortgage rates here.
| 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs | |
 |
4.95% | 5.50% | 5.95% | 6.15% | 6.45% |
 |
5.19% | 5.45% | 5.95% | 6.15% | 6.45% |
| BNZ | 5.25% | 5.40% | 5.90% | 6.15% | 6.35% |
| Kiwibank | 4.89% | 5.45% | 5.90% | 6.15% | 6.45% |
 |
5.19% | 5.65% | 6.04% | 6.30% | 6.60% |
| Co-op Bank | 4.94% | 5.45% | 5.80% | 6.10% | |
| HSBC Premier** | 4.99% | 5.50% | 5.90% | 6.15% | 6.40% |
| SBS / HBS | 4.95% | 5.25%* | 5.65% | 5.85%* | |
 |
4.88% | 5.45% | 5.80% | 6.10% | 6.30% |
Note: * This story has been updated with corrected comparative rates for SBS / HBS.
** HSBC rates also changed today.
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Fixed mortgage rates
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Updated with comment from Westpac on the changes. Updated again with HSBC changes.
4 Comments
But not deposit rates...and that's because our 'independent' Mr Wheeler cannot get past go.
The way to stamp on the bubble is not with LVR games and jawboning....it's just a matter of increasing the ratio of capital required by banks from local deposits....
Right now Westpac ought to be lifting deposit rates....they are not doing so because the cheap overseas loot (often resulting from printing) is an easy grab.
Who is running the economy?....the private banks.
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