ASB has started the new week pushing through a set of rate hikes for both home loans and term deposits.
However, they did cut their 6 month fixed mortgage rate, by -6 bps to 4.59%, leaving it higher than their main rivals but matching the Kiwibank rate for this short fixed term.
Update: Kiwibank has also changed their rates.
For one year and eighteen months fixed, they raised rates +10 bps. And that means they now have the highest rates in the market for those terms.
For two years, they raised their rate by +20 bps, to 4.95%.
And for three years, their rate is up +10 bps to 5.19%.
Both of these are also the highest in the current market.
They didn’t raise 4 and 5 year rates this time, but they did that recently.
On the term deposit front, they have raised rates too. For nine and 12 months, their rate is up +5 bps. For 18 months it is up +15 bps. And for 24 months it is up +35 bps to 4.00%. They have also raised longer rates. But all these TD increases just bring them up to where their main rivals have already settled, so none are especially attractive in the current market.
ASB’s changes follow last week’s changes by Westpac, ANZ and Westpac, although they have settled on positions in the mortgage market that are above these rivals. They will be hoping others follow, soon.
Update: Kiwibank has changed its home loan rates, and its term deposit rates too. They now have the market highest 3 year rate.
To compare mortgage rate offers in a way that includes the application and account fees costs (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement, or other incentive, you can use our home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.
Negotiate. How flexible banks may be will depend on the strength of your financials.
One other useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is here.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees will be minimal in a rising market. But they become important in a falling market, like now.
Here is the snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.
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2 years %
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18 months %
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1 year %
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