Hard on the heals of a Kiwibank floating rate rise, ANZ has also shifted a number of fixed mortgages rates up too.
These hikes come just two days ahead of the next RBNZ OCR review which is widely expected to leave policy rates unchanged at 1.75%.
The ANZ rate hikes are basically for their standard rates.
But they also raised one of their 'specials' as well. Their two year is up +6 bps to 4.85%. That is now the highest two year rate in the market, higher than all their main rivals and as high as the Co-operative Bank offer for that term.
ANZ's standard rate rises are for all rates of 18 months and longer.
That takes their 18 month rate up +10 bps to 5.15%.
It takes their three year rate up +10 bps to 5.59%.
Their four year rate is up even more, up +19 bps to 5.89%.
And their five year fixed rate rises +24 bps to 6.09%.
These rises come even though wholesale rates have not moved up materially over the past four months; in fact, if anything they have moved lower over that time frame.
These rises also come after the bank announced a half year profit rise of +14% to NZ$869 mln which saw income rise while expenses and credit impairments fell.
And one of their main rivals predicted that mortgage rates would rise, ironically because "margins are falling".
However, ANZ has announced a matching range of term deposit rate rises. Their target is shifting to local funding rather than more offshore wholesale funding.
These TD changes are not fully commesurate however, and in fact involve two rates being reduced for terms of 7 and 8 months.
TD rates for 3, 4 and 5 years have been raised each by +10 bps. They are detailed in a separate story, here.
See all banks' carded, or advertised, home loan interest rates here.
Here is a snapshot of the fixed-term rates on offer from the key retail banks.
| below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| % | % | % | % | % | % | % | |
 |
4.99 | 4.49 | 5.15 |
4.85 |
5.59 |
5.89 |
6.09 |
 |
4.95 | 4.45 | 4.70 | 4.74 | 5.09 | 5.49 | 5.69 |
 |
5.35 | 4.59 | 5.05 | 4.79 | 5.09 | 5.89 | 6.09 |
 |
4.99 | 4.69 | 4.79 | 5.25 | 5.75 | 5.99 | |
 |
5.25 | 4.59 | 5.05 | 4.79 | 5.09 | 5.69 | 5.49 |
 |
4.80 | 4.59 | 4.75 | 4.85 | 5.25 | 5.65 | 5.85 |
 |
4.85 | 4.09 | 4.09 | 4.29 | 4.89 | 5.29 | 5.59 |
 |
4.99 | 4.59 | 4.85 | 4.79 | 5.25 | 5.65 | 5.85 |
 |
4.85 | 4.55 | 4.75 | 4.75 | 5.15 | 5.65 | 5.79 |
In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.
And TSB Bank has a ten year fixed rate of 5.99%.
9 Comments
Hard to see how this is justified given they posted the best result of the big four. HY profit up 14%, decreasing funding gap c.f. 2015 and 2016. Net interest margin down only 10bps which is less than the competition, at the same time as cds spreads have reduced. When wholesale rates are flat what's the justification? Has anyone got recent rates offered by ANZ? Are they giving much of a discount? The margin to swap seems ludicrous otherwise.
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