ASB has also raised home loan rates today, including its floating rate.
At the same time, ASB has changed some term deposit rates, lowering its nine month rate, but raising both its three month and eighteen month rates.
The last time ASB changed home loan rates was on January 6, 2017.
The hike of the floating rate puts ASB at a pricing point significantly higher than any of its rivals. But it will be hoping they follow, as they all did after its January 6 changes.
ASB now also has the highest one year carded rate offer in the market.
Here is a way to see both changes from ASB:
| as at Dec 31, 2016 |
January 6 change |
January 23 change |
New rate Jan 23, 2017 |
|
| % | % | % | % | |
| Floating rate | 5.65 | ... | +0.15 | 5.80 |
| 6 mth fixed | 4.75 | +0.10 | +0.10 | 4.95 |
| 1 year fixed | 4.29 | +0.20 | +0.10 | 4.59 |
| 18 months fixed | 4.45 | +0.20 | +0.10 | 4.75 |
| 2 years fixed | 4.59 | +0.20 | ... | 4.79 |
| 3 years fixed | 4.79 | +0.30 | ... | 5.09 |
| 4 years fixed | 5.19 | +0.30 | ... | 5.49 |
| 5 years fixed | 5.39 | +0.30 | ... | 5.69 |
ASB last changed its floating rate on November 25, 2016, raising it at that time by +10 bps.
Kiwibank also raised home loan rates today, as did the SBS Bank although SBS also cut its one year rate to a market leading level.
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 | Floating | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs |
| % | % | % | % | % | % | |
 |
5.69 | 4.99 | 4.45 | 5.05 | 4.75 | 5.49 |
 |
5.80 |
4.95 |
4.59 |
4.75 |
4.79 | 5.09 |
 |
5.79 | 5.25 | 4.49 | 5.05 | 4.79 | 5.09 |
 |
5.40 | 4.85 | 4.35 | 4.65 |
5.05 |
|
 |
5.65 | 5.25 | 4.49 | 5.05 | 4.79 | 5.09 |
 |
5.55 | 4.80 | 4.45 | 4.60 | 4.75 | 5.05 |
 |
5.59 | 4.85 | 4.19 | 4.29 | 4.39 | 4.69 |
 |
5.54 | 4.50 | 4.19 | 4.45 | 4.54 | 4.95 |
 |
5.54 | 4.75 | 4.25 | 4.45 | 4.49 | 4.69 |
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%.
8 Comments
Okay the banks are all "Turkey peeking" right now to see what the other banks are doing, and then boldly taking one tiny step before resorting to yet more hesitant Turkey peeking to see if another bank is brave enough to go further .
Are they hesitant to be out-of-kilter with their competitors ?
Where is the top of this cycle ?
Or are we going to see small but steady increases every week for the foreseeable future , and a whole lot of Turkey peeking ?
The banks wants the people to fix their loans so they are unnecessarily increasing the floating rates because the fixed rates are going up. they borrow money from overseas in the wholesale market and if the interest rates in the wholesale market goes up than the fixed rates will go up. They dont want a situation in their balance with most of the home loans in the floating because the floating loan is always a liability in the banks balance sheet where as a fixed loan is always an asset in the balance sheet. Why is RBNZ not controlling the floating rates with the banks because the OCR is 1.75% and the banks are charging 5.90% the margin here is 4.15% which is not fair
Sorry but there are wholesale errors in your assertions. All loans by banks are 'assets' in a bank's balance sheet. Both floating and fixed, it makes no difference.
Secondly, claiming that a bank's margin is the difference between the loan interest rate and the OCR is plain wrong. Most readers of this website know that the banks don't borrow from the RBNZ at the OCR rate. Banks source their funding from many sources. You can find the details by checking the RBNZ Statistics resource.
And thirdly, you can hardly claim banks borrow from the RBNZ at the OCR rate while in the same breath claim the "borrow money from overseas". Most bank funding is from local sources. Look it up. Yes some of the major banks do borrow in international markets but it is hardly all of their needs. They have borrowed NZ$357 bln of which $157 bln is from NZ households. Much of the rest is from other NZ customers. According to S6 and S1, $120 bln is from "non-residents".
It is never wise to just make up bald, unchecked claims anywhere - certainly not on this website
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