Kiwibank has now raised its home loan rates, the latest in a steady stream of banks changing rates.
This is the bank's second rate rise in two weeks.
It last raised rates on January 9, 2017 and that change included the hiking of its floating rate.
Since January 9, wholesale swap rates have fallen -1 bp for a one year term, risen +2 bps for two years, risen +4 bps for 3 years, and risen +5 bps for five years. In that same time, credit spreads have narrowed slightly.
Here is a way to see both changes from Kiwibank:
| as at Dec 31, 2016 |
January 9 change |
January 23 change |
New rate Jan 23, 2017 |
|
| % | % | % | % | |
| Floating rate | 5.25 | +0.15 | ... | 5.40 |
| 6 mth fixed | 4.75 | +0.10 | ... | 4.85 |
| 1 year fixed | 4.24 | +0.11 | ... | 4.35 |
| 2 years fixed | 4.39 | +0.15 | +0.11 | 4.65 |
| 3 years fixed | 4.75 | +0.20 | +0.10 | 5.05 |
| 4 years fixed | 5.30 | +0.15 | +0.10 | 5.55 |
| 5 years fixed | 5.40 | +0.15 | +0.10 | 5.65 |
These changes from Kiwibank are more about positioning against its rivals than wholesale funding pressures.
There were no Kiwibank term deposit rates announced with Monday's change.
ASB has also raised mortgage rates. We have reported those separately, but ASB's new rates are in the table below. ASB also raised some selected term deposit rates.
Today's changes don't alter who has the leading carded rates for mortgage borrowers. SBS Bank has joined HSBC Premier to lead for a one year term, TSB Bank has the market-leading offers for 3 and 5 year terms with HSBC.
See all banks' carded, or advertised, home loan rates here.
A snapshot from the key retail banks is:
| below 80% LVR | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | |
 |
4.45 | 5.05 | 4.75 | 5.49 | 5.70 | 5.85 |
 |
4.59 |
4.75 |
4.79 | 5.09 | 5.49 | 5.69 |
 |
4.49 | 5.05 | 4.79 | 5.09 | 5.69 | 5.79 |
 |
4.35 | 4.65 |
5.05 |
5.55 |
5.65 |
|
 |
4.49 | 5.05 | 4.79 | 5.09 | 5.69 | 5.49 |
 |
4.45 | 4.60 | 4.75 | 5.05 | 5.45 | 5.55 |
 |
4.19 | 4.29 | 4.39 | 4.69 | 5.09 | 5.29 |
 |
4.19 | 4.45 | 4.54 | 4.95 | 5.29 | 5.55 |
 |
4.25 | 4.45 | 4.49 | 4.69 | 5.10 | 5.29 |
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
TSB Bank has a ten year fixed rate of 5.75%.
6 Comments
Oh okay , thanks for the clarification , when you said " conflict " I had visions of Alleppo or Mosul.
Maybe "conflict " is the right word
As a fellow descendant of Northern Europe , I guess we see things through Calvanist eyes ( even if you are not a churchgoer it seems stamped into the Psyche) . Any unruly mob actions or violence are seen as confllct
My pacifist - leaning Dutch Grandparents would have been horrified at how the world is today , and certainly "Oma" would have described it as "strijd"
So any protest , yelling, stone throwing , flag burning, fire setting and associated mob violence is seen as "conflict ' in our eyes
"These changes from Kiwibank are more about positioning against its rivals than wholesale funding pressures."
Positioning? Sounds like they are jacking rates not because they have to, but because everyone else has. Surely it is better to remain in the lower end if you can afford to bring in more business...otherwise it all starts to look like they are in cahoots...
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