ANZ has raised two key mortgage rates, and added a new six month 'special' rate.
The new Special is a new 6 month mortgage rate of 4.95% for borrowers who have at least 20% equity in their home.
The bank has also increased its equivalent 1 year Special to 5.19%, up 24 bps from 4.95%.
And it has increased its 18 month Special to 5.59%, up 20 bps from 5.39%.
These changes are effective from Friday, September 20, 2013.
ANZ's standard fixed rates are unchanged.
And there are no changes to ANZ's variable/floating mortgage rate.
These adjustments position ANZ as per the table below which shows 'best carded rate' including special offers (which may have LVR restrictions).
Rate offers are changing with banks separating rates depending on whether client business can meet the new RBNZ 'speed limit' high LVR tests.
These ANZ changes come after a volatile day on credit and currency markets which say the US Fed surprise markets by not tapering their bond purchase program, and NZ release better than expected GDP data for Q2.
Local wholesale markets reacted to the days events by bidding down swap rates by 4 bps for the 1 yr, and down 9 or 10 bps for the 2 through 5 year terms.
See all advertised mortgage rates here.
| 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs | |
 |
5.19% | 5.59% | 5.95% | 6.50% | 7.10% |
 |
5.40% | 5.65% | 5.70% | 6.40% | 6.99% |
| BNZ | 5.39% | 5.39% | 5.95% | 6.29% | 6.90% |
| Kiwibank | 4.89% | 5.75% | 6.40% | 6.90% | |
 |
4.94% | 5.75% | 5.95% | 6.50% | 7.10% |
| Co-op Bank | 4.94% | 5.50% | 6.20% | ||
| HSBC Premier | 4.75% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 4.95% | 5.45% | 5.99% | 6.55% | |
 |
5.40% | 5.65% | 5.85% | 6.45% | 7.00% |
In addition to the table above, TSB has a 15 month 'special' rate of 5.15%.
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4 Comments
Since the Fed announced it will not commence tapering swap rates, that banks long term mortgage rates are based on, have plummeted - ie 3 year swap is now 3.91% versus 4.00% last week and 1 year swap now 2.93% versus 3.02% a week ago. Swap rates could easily drop back to record low levels based on the fact that the Fed now realise the USA economy is unlikely to recover any time soon - its been 5 years since the GFC commenced and probably has another 5 years to run.
So all the recent long term mortgage rate increases pushed through by the greedy banks must surely be reversed. Looks like lower interest rates for longer and more likely a cut in the OCR now that USA and Europe realise they are in a worse position than initially thought.
Thoughts on this anyone else?
So is this the "Thin end of the -wedge " and are we to expect rates increases across the board, including the OCR?
If so , then those who used this period of cheap money to retire their debt will be smiling .
Those who borrowed and spent like drunken sailors will regret it
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