More banks have pushed through mortgage rate increases to their fixed rates just before the Christmas holiday break.
ASB and cousin Sovereign have withdrawn their low LVR 'specials' and raised their standard rates.
ASB's new rates closely mimic the ANZ rates announced earlier in the week
Kiwibank has raised its one and two year rates, and increased its 2 year <80% 'special'.
Kiwibank has also raised some term deposit rates today.
The Cooperative Bank has also raised home loan rates for fixed terms of one to four years.
Because BNZ, SBS and TSB have yet to follow the herd, the gap between the lowest and highest one year home loan offers remains at 54 bps, the gap at 2 years is 84 bps, and the gap at five years is 65 bps.
However, the fact is that the move higher by most banks means it will be more difficult to negotiate extra rate reductions at the low-card banks - they are now offering a significant rate advantage at card.
Premium sweeteners may also be harders to win.
Wholesale swap rates are now back to levels last seen in July 2011. (Back then, one year fixed rates were 5.95%, two year rates were 6.45% and five year rates were 7.70%.)
However, in July 2011 wholesale rates were falling; they are now rising, and rising quite quickly.
Not only has the RBNZ clearly signaled that their policy rates will be going up in 2014, markets are believing them this time. As much as +1.25% is being factored in for 2014 rises.
Even more importantly, international bond rates are rising. Benchmark UST 10 yr yields are now up to almost 2.90%.
Countering the rising cost base, corporate CDS spreads are narrowing which will take some of the bite out of the upward pressure. These are also back to levels seen in early-mid 2011.
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
 |
5.49% | 5.85% | 6.29% | 6.60% | 7.20% |
| BNZ | 4.95% | 5.80% | 5.95% | 5.99% | 6.99% |
| Kiwibank | 5.45% | 5.95% | 6.40% | 6.90% | |
 |
5.49% | 5.85% | 6.29% | 6.65% | 7.20% |
| Co-op Bank | 5.19% | 5.85% | 6.25% | ||
 |
5.10% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 5.20% | 5.45% | 5.45% | 5.99% | 6.55% |
| TSB | 4.95% | 5.40% | 5.85% | 5.99% | 7.00% |
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