ANZ have announced mortgage rate changes effective Friday, July 5, 2013.
Two year fixed home loan rates are rising to 5.50%, up 5 bps from 5.45%.
Three year fixed rates increase to 5.95%, up 15 bps from 5.80%.
Four year fixed rates rise to 6.15%, up 5 bps from 6.10%.
Five year fixed rates are up to 6.45%, up 15 bps from 6.30%.
These changes follow the recent trend to push through relatively small increases but more frequentlly as wholesale money costs increase.
The nature of these increases positions ANZ equal to the highest carded rates offered by their main rivals.
However, they are the only one of the big-four banks offering a special rate lower than 5%. Their 4.95% Special offer expires on July 31, 2013.
You can link to ANZ's website quickly by clicking on their logo below.
Earlier in the week, BNZ raised longer term fixed mortgage rates also.
See all advertised mortgage rates here.
| 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs | |
 |
4.95% | 5.50% | 5.95% | 6.15% | 6.45% |
 |
5.19% | 5.45% | 5.95% | 6.15% | 6.45% |
| BNZ | 5.25% | 5.40% | 5.90% | 6.15% | 6.35% |
| Kiwibank | 4.89% | 5.45% | 5.80% | 6.10% | 6.25% |
 |
5.19% | 5.50% | 5.90% | 6.15% | 6.35% |
| Co-op Bank | 4.94% | 5.45% | 5.80% | 6.10% | |
| HSBC Premier | 4.99% | 5.35% | 5.75% | 5.99% | 6.20% |
| SBS / HBS | 4.95% | 4.99% | 5.65% | 5.65% | |
 |
4.88% | 5.45% | 5.80% | 6.10% | 6.30% |
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43 Comments
mmmh. Savings page on this site shows no increases and in fact some (minimal) decreased in rates offered on Term deposits.
Which would indicate the Banks have to pay higher wholesale, but not so interested in matching that rise for it's retail depositors. Who with rollovers etc, are pretty much captive. Not that there will be anywhere else to go given the cartel features of this market.
Latest Credit Focus from ANZ says swap rates will consoldiate at present levels before continuing upward trend (not down).
Wholesale swaps have risen reasonably sharply and many institutions will look at this when pricing their mortgage rates.
So long to low interest rates which will be a relief for those savers who have suffered recently
I see from the interest website that ANZ have just reduced their serious saver online bonus saver rate, from 4% to 3.75%. Making them less than their competitiors. It doesn't really make much sense that they would be reducing the saving interest rate, while raising the lending rate.
From their point of view it does - what they are trying to do is force their investors on to longer term deposit rates. I bank with them (mind you I bank with all of them) and it was suggested to me that I jump from the SS account into a 12month plus rate to get a 4% rate. I told them to FO and moved the money to BNZs equivalent. They know that interest rates will be moving up sooner than most realise so they would like nothing better to get their depositors stuck into longer term deposits which will be uncompetitive (from the depositors point of view, but not from theirs) by the end of 2013.
BoE Guidance: Lower for Longer
ECB Guidance: Lower for longer
RBA: Rescusitation mode: lower and then lower for longer
USA: Recovery mirage, Reality - Lower for longer
RBNZ: No OCR rises for 3 years:
Global outlook: Lower for Longer
Lower, lower, lower, lower,
Must keep economies afloat in the face of joblessness, consumer conservatism, lack of growth.
Adivce: do not fix for longer than 18 months. The teaser rates for 1 year are for "lock-in", & reluctance to allow "floating" rates to lead the market.
Very strong US payroll numbers overnight, and US bonds consequently up nearly 25 basis points by the close. NZ swap rates likely to be up another 10-15 come Monday morning putting additional pressure on bank's margins above their increasing cost of funds. How long can the beach ball get held below the water ? Where will fix rates be when floating rate hikes eventually come ?
Looks like the current rise in wholesale interest rates may turn out to be a short term "bubble". Australia likely to head back into recession, UK and Europe look like having another serious downer and in the USA Bernanke most likely has it all wrong. Does anyone seriously think economies can recover if interest rates increase? Current fixed rate increases in NZ are a ploy to encourage people to lock in then a few weeks down the track they will drop them again. Stay floating people and if you are planning to fix then negotiate hard with your greeedy high margin bank - only a sucker would pay the advertised rate!
Does anyone not negotiate hard BigBlue ? we all know that the true rate is slightly below the carded rate. Only issue you've got to think about with your advice is history. Remember that interest rates don't always rise just because economies are performing well - there is little doubt that a rate rise globally now would hurt alot, you've only got to observe the jawboning on here as to how desperate some are for that not to happen. But history shows plenty of examples where it happened where it was almost designed to do damage (1970's & late 80's) simply because inflation had to be crushed. Inflation isn't a problem in many countries currently, in fact disinflation is the trend, but the Fed's modelling will be telling them that, with the amount they've already printed, they will have to make moves sooner rather than later to ensure it doesn't raise its head again too far.
The Fed and other similar central banks want/need a long period of negative interest rates to inflate the debt problem away, and they can achieve that best by being seen to be taking steps to moderate inflation whilst still keeping interest rates low and keeping the debt burden manageable. If the market thinks they may lose control of inflation (and the mkt looks well ahead) then they will have considerably higher interest rates than the 10yr at 2.75% (up 1% in the past month or two) this morning, plus they will have an upward trend for both them and the globe that will be difficult to stop. So somewhat higher rates to stop considerably higher rates is the best we can expect.
Your predictions make sense to me Grant A. But it can go either way. Plenty of experts around, with totally opposing views to each other.
The remedy, in my view, is to get out of debt. Good times, bad times, cheap or expensive interest. Use them all to drive down the debt. Having no debt gives you power. And having power really works financially. For example, you don't have to plan to very fine margins, with critical results, against a future (in this case interest trends) that is more or less a toss of the dice.
As for 'negotiating' with the bank. Sure you can get some crumbs, but with their excessive margins, they are just playing with you.
KH - there are only really four recognised ways to overcome an excessive debt problem; grow your way out of it (with a debt to GDP ratio above 100% they're already past the point of being able to do that), print money and hand it back to your creditors (be it worthless to the creditors because of the devaluation of your currency that would entail), default, and or restructure (restructuring being a fancy name for default). The US doesn't have to default/restructure, as it can simply print money and effectively do No. 2 slowly, inflate their way out of the debt, and that's clearly the plan and what's happening.
By the way, what's US banks mortgages rates (presumed to be the most aggressive & competitive market in the world?), about 3.5%?...what's their deposit rates 0.25 - 0.75%....what's NZ bank mortgage rates..about 5.5%...what's their cost of funds/deposit rates..about 4%...its all maths.
http://www.tradingeconomics.com/united-states/government-debt-to-gdp
And greater next year and the year after...they have hardly given it proper consideration yet, just played around the edges on a massive problem, and whilst they do that, and print money, things look and feel good.
How much higher do Treasury bond and MBS yields need to rise before the Fed is held to account - and forced to explain - the large losses suffered in its $3.4 TN (and ballooning) portfolio? At this point, the Federal Reserve is akin to a novice trader that keeps adding to a losing position.
Is it a case of: ... “those who panicked first panicked best.”? Read more
I would suggest the ppl buying bonds should know whats what and what they are doing....on many levels.
To me the Fed is expected to hold things together while ppl "make money" clearly those making money expected any Fed action to be 2 years away....and when Bernakie hinted no, sooner, their greed switched to fear....
In terms of held to account, I'd suggest that those who could hold the Fed to account (I assume congress) will do no such thing because then the game is up for all...
But then ppl do stupid things.
PS look at the money running from the developing world....thats causing huge issues, probably worse than US T's being up a bit...
regards
Yep we can't forget that hundreds of billions of the dollars that flooded into US treasuries after the 2008 GFC crash was retail money - out of equities into bonds, the next bubble.....missed the equities rise since 2009 and now getting screwed over on their bond funds in what could turn out to be one of the world's biggest financial bubbles. So it's a big call to suggest theyre smart ones knowing what theyre doing... A fool and his money... The other side of its of course is the floating rate borrower who risks the same, and wants to blame others if things don't pan out as expected because they think they understand what the drivers are.
http://www.zerohedge.com/news/2013-07-05/margin-calls-coming-us-too-big…
It looks like there really will be some teeth in the new bank regulations, at least in the US. There is a long lead time on these things and it has rather looked like nothing much had changed. Should make for interesting times ahead.
Good to see the interest Steven - I'd suggest you go read a book that most with the interest read when it was published in 2009, This Time is Different - Eight centuries of Financial Folly, written by Reinhart & Rogoff. It is a vastly researched book which was highly acclaimed when it came out and still is - its researched facts rather than uninformed speclaton as you so commonly get on blogs for instance.
Go read it - guts is, you've got a major problem at 90% debt to GDP, and at above 100% already with no moves of consequence even being contemplated, the US is in a serious situation ongoing if it doesn't change course.
Yes I nthought you would point me there, there is no other "work" at all that suggest this 90%. Guess what you have obviously missed the "scandle" of the last few months that their data was either in error, they made simple mistakes or falsified.
Their credibility, already doubtful is gone bye bye.
So no I wont be reading such dis-credited work.
regards
Steven you're way out of date - those that found the spread sheet coding error admitted afterwards that it made damn all difference to the result. Why are you trying to deny the problem - why do you act like a complete idiot yet expect ppl to read to you - I'm a slow learner on that admittedly, but I've learnt.
Prettymuch everyone agrees there is no 90% threshold in R&Rs figures. High debt is worse than low debt, but it is a gradually sliding scale.
Also while R&R claim low growth follows high debt, R&R's own figures better support the model that high debt follows low growth. For an example of this kind of reanalysis (there are a whole bunch) see
https://dl.dropboxusercontent.com/u/15038936/RR%20Timepath/Dube_Growth_…
Tell you waht show m dates of articles newer than May and June this year showing in fact their work is robust, because in fact its shown to be wonkie, terminally so from what I read.
It simply doesnt work and they have so far from what Ive read dug themselves in deeper and it seems a partisanship thing....
Well, simple dont bother reading what I write, continue living in your world of make believe where you only read ppl that agree with your views......that will get yuou far.
Oh and as Ive said it before, I write as much to clear my thoughts on economics and the problems we face such as peak oil's impact on us and to put these out there and wait for them to be corrected or proved wrong. It seems ppl such as yourself cant accept there are other ways that are proving robust and more correct than the things you invent or accept at face value things other have invented.
That's your choice.
regards
Thanks Grant. Getting out of Debt seems to me to be painfull. Whatever the variations. 1-4.
in my life that pain, hard as it has been, has been ultimatley rewarding.
And yes i think there are those who are in too deep. And none of the QE shenanagins etc will dull that pain. Any easy way is illusion.
Thanks Grant. Getting out of Debt seems to me to be painfull. Whatever the variations. 1-4.
in my life that pain, hard as it has been, has been ultimatley rewarding.
And yes i think there are those who are in too deep. And none of the QE shenanagins etc will dull that pain. Any easy way is illusion.
Good link Stephen - not sure if this is it, but whenever it is, it's frightening. Those that don't think this is one of THE most important events that will play out sometime and impact us over the next few years are either naive or delusional - unfortunately there are at least three of them on here. And to think at least one NZ politician wanted us to go down the same route, not that we'd print a lot, just want we need that doesn't hard, yeah right
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