ASB has raised some fixed home loan rates, according to changes on their website today.
Three terms have been increased by +10 bps.
These new rates are effective now (Friday, July 7, 2017).
They have raised their two year 'special' rate to 4.84%, while the standard rate for this term is up to 5.24%.
They have raised their four year 'special' rate to 5.59%, while their standard rate for this term is up to 5.99%.
And they have raised their five year 'special' to 5.79%, and pushed their standard rate up to 6.19%.
Identical rises apply at Sovereign and BankDirect.
The last time ASB changed mortgage rates was on April 28, 2017. They are following ANZ, BNZ and Kiwibank (although the last Kiwibank move was a reduction).
This places ASB in the market with the lowest one year rate (with Kiwibank) of the major mortgage lenders, the lowest 18 month rate among those five, the highest (with ANZ and Westpac) two year rate, and the lowest 3, 4 and 5 year rates compared to their main rivals.
In the wholesale money markets, rates have started to rise from their long slumber. These rises have not been at the short end however, although there is some action for terms of two years and longer. Rates are +15 bps higher than where they were in mid-May 2017, but are still lower than where they started 2017.
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 | 4.55 | 5.15 | 4.85 | 5.59 | 5.89 | 6.09 |
 |
4.95 | 4.45 | 4.70 | 4.84 |
5.09 | 5.59 |
5.79 |
 |
5.35 | 4.59 | 5.05 | 4.79 | 5.09 | 5.89 | 6.09 |
 |
4.99 | 4.45 | 4.79 | 5.25 | 5.75 | 5.99 | |
 |
5.25 | 4.59 | 5.15 | 4.85 | 5.09 | 5.89 | 5.59 |
 |
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 | 4.85 | 5.25 | 5.65 | 5.85 |
 |
4.85 | 4.55 | 4.75 | 4.49 | 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 still has a ten year fixed rate of 5.99%.
17 Comments
US Stimulus 2008-2016
Fannie/Freddie:$7T
Federal deficits:$10T
State/Local deficits:$3T
QE: $4.7T
Total $24.7T
US Stimulus 2008-2016 Fannie/Freddie:$7T Federal deficits:$10T State/Local deficits:$3T QE: $4.7T Total $24.7T
http://www.dlacalle.com/the-feds-more-than-questionable-legacy/
Never said it wasn't abnormal, but it is already too late to do anything about it. Its all new territory and I can't see how we can go back to what was considered normal debt levels and normal interest rates. What's next after Ts of debt? How is even current levels sustainable?
Will never happen, the world doesn't have an endless supply of Lithium either, in fact it probably doesn't have enough to start with so expect the price of that begin to rise. many car makers are starting to tout electric only but the market is literally driven by price .For those of us who look after their own cars, electric is a bad option because the batteries are like your cambelt, doesn't matter how well you look after it it needs replacing.
Hi Carlos67, Imagine this: Not only is it going to happen, but sooner than you think. France seem to think it's possible. I'm sure you know batteries don't need to be made from Lithium, but any material where an electrical charge can flow between the cathode and anode. We may also be near peak car ownership (self driving cars, 'uber', better public transport (not n NZ)). Hybrids could be run on bio fuels. Etc. Etc. Your car with a cam belt will become a thing of the past. There will be vehicles where the batteries are swapped out when end of life and for the hybrids, bio fuel generator swapped when end of life too.
Hobo has an interesting point. Will interest rates ever go up? quite a few people think the current incarnation of fiat currency will go up in a ball of flames before interest rates go up. Interest rates (globally) have been declining for about 35 years now since the mid 1980's, albeit with short term fluctuations. Factor in declining oil reserves & historically low oil prices and historically high asset prices. its a complicated and scary equation. I just don't see (today's) money being worth more in the future than it is now.
Do you think the Banks base their pricing on their data of how much of these different periods loans will fall due for re fixing in the next few months, so they can make the most of the higher rates ? Not every customer will shift loans for such small rate increases, right ?
Just have a look what's happening in aussie
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