With swap rates flat-lining over the past 10 days after a retreat from early May peaking, it may seem unexpected that we have fixed rate changes to report Monday.
But clearly the Reserve Bank's monetary policy review last Wednesday has given some banks the conviction to adjust their fixed rate home loan offers.
The first to move is Kiwibank who have added +30 basis points (bps) to their fixed six-month and fixed one-year home loan rates.
After the change, they now 'lead' the market with the highest offers for each of these two fixed terms.
They are unlikely to have this distinction for long. We expect other banks will follow soon, this week.
Kiwibank also added +10 bps to +25 bps to all its term deposit rates for terms of one year and less.
This comes after they were the first to move up for their home loan floating rates, and some key savings rates after Wednesday's 50 basis points Official Cash Rate increase.
Here is a ready reckoner for what you can expect. If you had a two year fixed rate locked in two years ago, you would have been on about a 3.35% rate. Much has changed since, so this table will give you an idea about what could happen since then (that is, the difference in monthly payments).
| Loan amount ► | $250,000 | $350,000 | $450,000 | $550,000 | $650,000 | $750,000 |
| Interest rate ▼ |
∆ | ∆ | ∆ | ∆ | ∆ | ∆ |
| 5.00% | +240 | +337 | +433 | +529 | +624 | +721 |
| 5.25% | +279 | +391 | +502 | +613 | +724 | +837 |
| 5.50% | +317 | +445 | +572 | +699 | +826 | +953 |
| 5.75% | +357 | +501 | +643 | +786 | +1108 | +1072 |
| 6.00% | +397 | +556 | +715 | +874 | +1032 | +1192 |
| 6.25% | +437 | +613 | +788 | +962 | +1137 | +1313 |
| 6.50% | +478 | +670 | +861 | +1052 | +1243 | +1436 |
| 6.75% | +519 | +728 | +936 | +1143 | +1351 | +1559 |
| 7.00% | +561 | +787 | +1011 | +1235 | +1459 | +1685 |
The one, two and three year swap rates have had their recent top taken off the 2022 rise. But they remain elevated and the settling back trend seems to have ended. Last Wednesday's RBNZ signals gave it a renewed upward momentum. This is most pronounced at the short end of the swaps curve with the one year pushing up to 3.46%, its highest level since April 2015. (Back then, Kiwibank was offering a one year mortgage rate at 5.69% and the average for all the five big home loan lenders was 5.65%).
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 May 30, 2022 | % | % | % | % | % | % | % |
| ANZ | 4.65 | 4.55 | 4.90 | 5.25 | 5.55 | 6.35 | 6.45 |
 |
4.49 | 4.49 | 4.85 | 5.25 | 5.55 | 6.35 | 6.45 |
 |
4.39 | 4.55 | 4.90 | 5.25 | 5.45 | 5.79 | 5.99 |
 |
5.10 +0.30 |
4.85 +0.30 |
5.19 | 5.39 | 5.55 | 5.79 | |
 |
4.59 | 4.49 | 4.89 | 5.19 | 5.49 | 5.79 | 5.89 |
| Bank of China | 4.25 | 4.65 | 4.95 | 5.25 | 5.65 | 5.85 | |
| China Construction Bank | 4.35 | 4.45 | 4.85 | 5.19 | 5.45 | 6.15 | 6.35 |
| Co-operative Bank | 4.29 | 4.29 | 4.85 | 5.19 | 5.45 | 5.75 | 5.95 |
| Heartland Bank | 3.85 | 4.70 | 4.84 | ||||
| HSBC | 4.49 | 4.39 | 4.89 | 5.15 | 5.39 | 5.69 | 5.89 |
| ICBC | 4.39 | 4.29 | 4.79 | 5.09 | 5.35 | 5.65 | 5.89 |
 |
4.49 | 4.19 | 4.69 | 4.85 | 4.99 | 5.45 | 5.95 |
 |
4.45 | 4.34 | 4.90 | 4.99 | 5.35 | 5.55 | 5.75 |
Fixed mortgage rates
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Daily swap rates
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