Even though it is less than a week before the next RBNZ OCR review and likely rise, TSB Bank has today changed three of its mortgage rates.
Its three year fixed rate has been increased to 6.50%, up 25 bps from 6.25%.
It has reduced its four year rate to 6.99%, down 20 bps from 7.19%.
And its five year fixed rate has also been reduced, also down 20 bps to 7.20% from 7.40%.
None of these changes are market leading.
In fact, the rise in their three year rate reverses a recent trend where banks have been chipping away at that offer. But the new TSB Bank 6.50% offer is now among the highest for that term, only exceeded by ANZ at 6.55%.
TSB Bank however still has the 'best bank' rates for 18 month and 2 year fixed rate mortgages at 5.85% and 5.80% respectively.
The two year rate is a limited time 'special' where conditions apply.
Next week on June 12 the RBNZ will review the OCR again and a third consecutive +0.25% is anticipated by the markets. But of more importance will be the Monetary Policy Statement and related briefings which will set the scene for the rate change track for the rest of 2014.
Some observers expect a softening of the RBNZ view whereas others are starting to say that with the recently falling exchange rate the RBNZ may be more determined to maintain its rising bias.
See all banks' carded, or advertised, home loan rates here.
This is how the new Co-op Bank mortgage rates compares:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.95% | 6.19% | 5.85% | 6.55% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 7.40% |
 |
5.85% | 5.99% | 5.89% | 6.25% | 6.99% |
| Kiwibank | 5.85% | 5.85%* | 6.29% | 7.20% | |
 |
5.95% | 6.14% | 5.85% | 6.25% | 6.89% |
| Co-op Bank | 5.85% | 5.85% | 5.85% | 6.25% | 6.89% |
 |
5.59% | 5.99% | 5.99% | 6.99% | |
 |
5.70% | 5.85% | 5.99% | 5.95% | 6.79% |
| TSB Bank | 5.70% | 5.85% | 5.80% | 6.50% | 7.20% |
* only as part of their 60/40 'special' deal. Otherwise 6.19%.
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