Westpac, the last of the main banks, has now moved to raise home loan rates.
Like two other rivals, Kiwibank and BNZ, they have refrained from raising their 3.99% one year fixed rate.
The net result of their changes leaves them with the lowest 12 and 18 month fixed rates among the majors, and with the lowest four and five year fixed rates.
This round of increases was kicked off by ANZ on Monday, March 28 and has taken until Friday, April 7 to wash through all financial institutions. Given the speed at which wholesale rates have been rising over this time, that seems like a slow burn to me. On Monday, March 28 the two year swap rate was 3.17%. On Thursday April 7 it had risen to 3.57%. This observer had imagined such a +40 basis points rush higher would have motivated bank treasurers to push though increases faster than they have.
Possibly the early movers, ANZ and ASB, are thinking about another rise soon. But with dawdlers around, the competitive risk is rising, especially as home loan transaction activity is sagging.
Of course there will be more transactions from rollovers than new ones generated by real estate sales activity, but banks will be feeling the top come off their mortgage activity with lower market churn. So every successful transaction is now more valuable.
Westpac has also announced +10 bps to +30 bps term deposit rate increases, with the popular durations at the low end.
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 April 8, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.45 | 4.20 | 4.55 | 4.85 | 5.15 | 5.99 | 6.09 |
 |
4.49 | 4.19 | 4.75 | 4.95 | 5.29 | 5.89 | 5.99 |
 |
4.19 | 3.99 | 4.55 | 4.69 | 5.25 | 5.60 | 5.80 |
 |
4.45 | 3.99 | 4.85 | 4.99 | 5.45 | 5.79 | |
 |
4.39 +0.20 |
3.99 | 4.49 +0.20 |
4.79 +0.24 |
5.09 +0.20 |
5.39 +0.40 |
5.69 +0.60 |
| Bank of China | 4.15 | 4.05 | 4.35 | 4.55 | 4.75 | 5.15 | 5.35 |
| China Construction Bank | 4.15 | 3.95 | 4.35 | 4.50 | 4.75 | 5.09 | 5.20 |
| Co-operative Bank [*=FHB] | 3.89 +0.10 |
3.79* +0.10 |
4.49 +0.30 |
4.79 +0.29 |
4.99 +0.24 |
5.45 +0.46 |
5.79 +0.70 |
| Heartland Bank | 3.49 | 4.05 | 4.25 | ||||
| HSBC | 4.09 | 3.95 | 4.49 | 4.69 | 4.89 | 5.04 | 5.19 |
| ICBC | 4.15 | 3.99 | 4.35 | 4.50 | 4.85 | 5.05 | 5.25 |
 |
4.49 | 3.99 | 4.39 | 4.55 | 4.69 | 5.19 | 5.55 |
 |
3.95 | 3.95 | 4.39 | 4.55 | 4.75 | 4.99 | 5.09 |
Fixed mortgage rates
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Daily swap rates
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