ASB has increased two of its advertised fixed-term mortgage interest rates, lifting its six-month rate by 34 basis points and its 18-month rate by 15 basis points.
The bank's new six-month rate is 5.59%, up from 5.25%, and its 18-month rate is 5.55%, up from 5.40%. ASB's advertised floating rate remains 5.75%.
Meanwhile, sister banks ANZ and National have cut their six and 18-month rates and hiked their one and two-year rates.
On Monday morning ANZ and National cut their six-month rates by 15 basis points to 5.50% and their 18-month rates by 16 basis points to 5.39%. They hiked their one-year rates by 25 basis points to 5.50% and their two-year rates by 11 basis points to 5.60%.
And Westpac has increased two fixed mortgage rates, with their one year fixed rate going to 5.49% from 5.25%, and their three year fixed rate going to 5.90% from 5.75%
The increase to ASB's six-month rate came just a day after rival Kiwibank introduced a fresh mortgage special offer of 4.99% for six-months. Borrowers must have at least 30% equity in their property to qualify for the Kiwibank loan.
Sister banks SBS and HBS are also running a six-month 4.99% special offer, although their offer is only available to residential borrowers who have their full banking with SBS or HBS and a maximum debt servicing ratio of 35%.
Kiwibank's standard six-month rate is 5.25%. Other banks' six-month rates range from 5.45% to 5.75%.
Over 18-months, ANZ and National now have the lowest advertised rate, with ASB's new rate brings it in line with the 5.55% also advertised by BNZ. Westpac and TSB Bank offer 5.65%.
The ASB rate increases come after it cut its advertised five-year, fixed-term rate by 51 basis points to 5.99% on Monday.
Most other banks are advertising five-year rates of between 6.50% and 6.70%.
However, SBS and HBS are promoting a five-year special rate of 5.99%. Their offer is conditional on customers having all their banking with either SBS or HBS and loan-to-valuation ratios within 80%.
See all bank advertised mortgage rates here.
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10 Comments
Where were swap rates when ASB originally set their 6 and 18 month rates? Given it's been quite a few weeks since these rates were set and swap rates were much lower than they are today - it shouldn't be any surprise that were seeing a number of fixed HL rates rising.
Why do you think ASB wants to talk the market up?
intersting -- i just agreed a 4.9% deal for one year yesterday with ASB and also have a .5% discount on the variable increased from .25% so not sure they really think the 6 month rate is going to change much at the moment -- still lots and lots of room to negotiate withthe banks at the moment and ASB are just the same in that regard -- Inflation under 1% and no sign of anything positive throughout the world - huge downside risks in Europe - China possibly stalling - take the short term fixes or variable discoutnts
What happens when the game in Europe and the farce in the US and utter boondoggle in China..all go pear shaped taking down big parasites...when the lying govts can no longer sway peasant thinking by ordering the printing to speed up...
Already the criminal communist party Chinese thugs are rushing their ill gotten wealth out of China at breakneck speed...they know what's coming.
Bernanke is trapped at zero...he can't raise and he can't cut...but he can print...and fail again.
King at the BoE is into jawboning attacks on the parasites demanding more regulatory powers for himself...what a joke.
The piigs fiasco promises more theatrical EU circus acts by the clowns...but without the public turning up as they escape the hole in the road ahead.
And now some goofball wants the world to believe aliens are about to arrive and vaporise all the humans...that this madness is supposed to lead to instant recovery....this is how utterly stupid some economists are.
Send your money to the Aussie banks...they're gonna need it from the good paying, "ya can't lose with property" Kiwi's....to try to save themselves from the Oz crash, happening now. Like Wolly said, perfectly, "It's a bank owned farm."
Just upgraded our latest rental. Now beachfront for same money paid last year. Will continue loving renting through the AUCKLAND crash, when it happens (soon, as soon as the Chinese money can no longer flee to friendlier shores).
Until I see fewer vacancies in commercial buildings, and jobs created that aren't in Government, the benefit, fast-food, or dairy's, I will not ever believe that this market has any legs, or the ongoing ability to sustain the debt levels that exist now. The chickens come home to roost, eventually.
How long do you think overseas lenders will continue to toss money their way? Is Aussie considered the safe haven of all safe havens? Which currencies are better? I don't think the high real estate prices are fully priced in. Then again, all currencies are horses in glue factory, at the moment.
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