BNZ chooses a lower rate track for its floating and fixed rate offers following last week's 75 basis points RBNZ OCR hike

Although some major banks have essentially matched ANZ's aggressive fixed rate increases, others haven't, and taken up the space below them by recognising the modest wholesale rate changes.

BNZ is the latest major to move. 

First, BNZ only added 45 basis points to its floating rates, and extended the date when BNZ will apply the increase out to December 23. This is a lot later than their rivals. And the hike is far less than both the Reserve Bank (RBNZ) Official Cash Rate rise of 75 basis points, and its rivals.

This leaves BNZ's floating rate now even below the equivalent Kiwibank rate.

And on the fixed rate front, BNZ is extending the competitive pressure. For every fixed term, BNZ's offers are equal or lower than each of their big Aussie bank rivals. For the competitive two year fixed term, they are 15 basis points lower than both ANZ and ASB, and 10 basis points lower than Westpac. 

(Kiwibank has yet to announce fixed rate increases for this latest round. The same is true for SBS Bank and TSB).

All this comes as the wholesale swap rate curve inverts the most in 14 years.

Banks have three options for funding now; wholesale markets, their retail customer bases, and the RBNZ's Funding for Lending Program (FLP). But today is the last day they can draw on the FLP. A couple may do so, but most have already had their fill. So this third option closes off Tuesday.

One useful way to make sense of the 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 December 6, 2022	%	%	%	%	%	%	%
ANZ	6.60	6.54	6.64	6.74	6.84	7.54	7.64
	6.50	6.54	6.64	6.74	6.84	6.99	6.99
	6.49 +0.50	6.49 +0.50	6.59 +0.50	6.59 +0.50	6.25 +0.44	6.79 +0.50	6.79 +0.50
	5.95	5.89		6.15	6.29	6.39	6.39
	6.49	6.49	6.59	6.69	6.69	6.69	6.79
Bank of China		5.75	5.85	5.95	5.95	6.15	6.15
China Construction Bank	6.50	6.54	6.64	6.74	6.84	6.85	6.85
Co-operative Bank [*FHB special]	6.29 +0.50	6.19* +0.50	6.49 +0.44	6.59 +0.44	6.59 +0.30	6.69 +0.30	6.79 +0.30
Heartland Bank		5.75		6.05	5.95
HSBC	6.44 +0.65	6.44 +0.50	6.59 +0.55	6.69 +0.60	6.79 +0.60	7.29 +0.70	7.39 +0.70
ICBC	5.75	5.75	5.85	5.95	6.05	6.29	6.39
	5.85	5.89	6.05	6.09	6.19	6.29	6.29
	5.79	5.79	6.09	6.15	6.29	6.39	6.39