Ahead of the Wednesday, February 23 Reserve Bank Monetary Policy Review, challenger banks are jostling their home loan rates.
SBS Bank has raised some.
TSB has lowered some, or in their case, lowered more of them because they cut one on February 3, 2022.
The SBS rises still pitch their one year rate below the main banks (and TSB). They match TSB for a two year fixed contract but remain well below the main banks. They are above TSB for three year, but well below the main banks for this fixed term as well. For four and five years they have given up their market-leading positions.
TSB on the other hand looks like it is getting more aggressive with some key selected interest rate positions, although none are market-leading.
Neither have rate positions that challenge Heartland Bank's offers.
Hanging over the RBNZ review are what Omicron will do to New Zealand, and what Ukraine will do to the international financial markets.
But the overall shift up has been all about rising inflation.
Wholesale rates have been rising recently from these inflation expectation pressures, but they will probably fall back somewhat today on global risk aversion related to the Ukraine crisis.
One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculator which is also below. (Term deposit rates can be assessed using this calculator).
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market.
Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at February 14, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.00 | 3.65 | 4.15 | 4.35 | 4.75 | 5.65 | 5.85 |
 |
4.19 | 3.65 | 4.09 | 4.15 | 4.69 | 4.95 | 5.19 |
 |
3.99 | 3.65 | 4.09 | 4.35 | 4.69 | 4.89 | 4.99 |
 |
4.19 | 3.69 | 4.35 | 4.69 | 4.99 | 5.15 | |
 |
4.19 | 3.69 | 4.09 | 4.35 | 4.69 | 4.79 | 4.95 |
| Bank of China | 3.49 | 3.49 | 3.69 | 3.99 | 4.45 | 4.65 | 4.85 |
| China Construction Bank | 3.65 | 3.65 | 3.85 | 4.35 | 4.65 | 4.95 | 5.05 |
| Co-operative Bank [*=FHB] | 3.39 | 3.29* | 4.05 | 4.15 | 4.55 | 4.89 | 4.99 |
| Heartland Bank | 3.25 | 3.79 | 4.15 | ||||
| HSBC | 3.94 | 3.49 | 3.94 | 4.15 | 4.54 | 4.74 | 4.99 |
| ICBC | 3.65 | 3.49 | 3.85 | 4.05 | 4.55 | 4.75 | 4.95 |
 |
3.79 | 3.55 +0.10 |
3.95 | 4.10 +0.11 |
4.55 +0.20 |
4.74 +0.15 |
4.95 +0.26 |
 |
3.60 | 3.60 | 3.90 -0.10 |
3.99 | 4.35 -0.29 |
4.74 | 4.90 |
Fixed mortgage rates
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Daily swap rates
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Comprehensive Mortgage Calculator
Interest + fees paid: $370,800
Principal repaid: $450,000
Total amount paid: $820,800
Interest + fees paid: $370,800
Principal repaid: $450,000
Total amount paid: $820,800
6 Comments
Looks like no one could beat the rates offered by Heartland for a while.
On a 800K loan, the difference is $82 per fortnight based on a 1 year rate.
That's quite a substantial savings.
That's $2100 of amortisation right there
tiny tweaks and although the Mortgage rates have flattened off slightly -- the SWAP rate shows no sign of slowing down its steady and fairly rapid ascent
29bps off the 4 year rate is quite a juicy reduction by TSB. Still, this is probably all just jockeying for position in the mortgage market. There's no fundamental justification to be lowering rates at this point in time.
Yep, TSB wanting to be the "Good guys" putting their customers first, but then will unfortunately have to hike after the inevitable OCR hike this month and they can say "It wasn't us, it was the RBNZ.
If TSB was my shop, I'd be more focused on market share than margin, good move.
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