Hot on the heels of the Reserve Bank's fourth increase to the Official Cash Rate this year, ANZ and ASB have announced increases to floating mortgage interest rates.
ANZ says its floating mortgage rate will increase by 25 basis points to 6.74% from July 28 - next Monday - for new loans, and from August 11 for existing loans.
ANZ's flexi loan rate will also increase by 25 basis points, to 6.85%. The increase for both new and existing borrowing will kick in from August 11. Earlier the Reserve Bank increased the OCR by 25 basis points to 3.50%.
ANZ also said it was introducing a new term deposit "special," which is a 4.40% rate for eight months. That's 20 basis points higher than ANZ's nine month rate.
"This complements our 18 month to five year terms which are the best in the market among the major banks. Savers can also benefit from our Serious Saver account which, at 4.50%, is the leading rate among major banks," ANZ said.
"Retail interest rates are shaped by a range of market and economic factors, of which the OCR is one. The Reserve Bank has signalled there will be a period of assessment before interest rates adjust further towards a more-neutral level. It would be sensible for anyone with a home loan, or anyone considering one, to make sure their budget is planned so they can comfortably manage further increases in interest rates," the bank added.
ASB, meanwhile, has increased its floating mortgage rate by 25 basis points to 6.75%, with the increase effective from today (Friday) for new lending and from August 1 for existing lending. ASB also increased its nine and 12 month term deposit rates for savers with a minimum deposit of $10,000.
The nine month rate will be increased 30 basis points to 4.45%, and the 12 month rate by 15 basis points to 4.50%, with the increases taking effect from Monday, July 28.
ANZ also increased a series of commercial, business and agriculture floating interest rates as outlined in the chart below.
See all banks' carded, or advertised mortgage rates here.
You can also see all bank non-interest rate home loan incentives here.
See all carded, or advertised, term deposit rates for one to nine months here, and see all carded, or advertised, term deposit rates for one to five years here.
ANZ's new floating home loan rates compare with their main rivals this morning as follows:
| below 80% LVR | Floating | Revolving |
| Credit | ||
 |
6.74% | 6.85% |
 |
6.75% | 6.75% |
 - Total Money |
6.49% | |
|
- Standard & FlyBuys |
6.49% | 6.49% |
| Kiwibank | 6.40% | 6.40% |
 |
6.24% | 6.50% |
| Co-op Bank | 6.45% | 6.45% |
 |
6.59% | 6.80% |
 |
6.30% | 6.15% |
| TSB | 6.49% | 6.49% |
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4 Comments
Take a look at this table prepared by the Reserve Bank and compare the last few weeks mortgage approvals with the same period in each of the previous five years. The rate of mortgage approvals have plummeted almost back to levels of the GFC period. So the banks will soon come out with tempting cut rate spring mortgage deals, slashing their own margins and using up some of the billions of profits they have made in recent times. If they want to stimulate customers to take out a mortgage they will have no choice. All those that rushed to fix in the last two months and over the next week will likely get burnt within 12 months as they will have locked in for three or four years only to find that rates are considerably lower next year once Wheeler realises his experiment with the OCR has failed, that there is no inflation blowout and he has to slash the OCR. Am I wrong in thinking this way?
You can see the same RBNZ data here:
http://www.interest.co.nz/charts/credit/mortgage-approvals
and here:
http://www.interest.co.nz/charts/real-estate/mortgage-approvals
What graph are you looking at? Approvals aren't stronger that the last 24 months. 5594 on 2014-07-11, vs 6728 2013-07-12 that's a 17% drop in number appoved. Total value approved is down too 1057 vs 1143. It's only the average value of the individual mortgage that is up. Which matches what the sales data was doing until a couple months ago, prices still heading up on lower volumes.
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