![\"The](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/4JTGZPZ_RATESUP_ASB_KIWI_png.jpeg\")
<\/p>\n<\/p>\n
\nThe changes bring ASB and Kiwibank into line with all other major banks.
\nPhoto: SUPPLIED\n<\/p>\n
Fast changes in wholesale interest rates have seen ASB and Kiwibank become the last of the major bank lenders to hike their longer term fixed home loan rates.<\/p>\n
ASB’s increases range between 10 to 20 basis points for loans fixed between 1 and 3 years, while Kiwibank has made adjustments to its 2 to 5 year rates. Both banks have shaved a little off their six month offering.<\/p>\n
The changes bring ASB and Kiwibank into line with all other major banks, which have also bumped up rates in recent weeks.<\/p>\n
ASB chief economist Nick Tuffley says the switch from talk of cuts to possible interest rate hikes in the Reserve Bank’s latest outlook has compelled markets to adjust pricing.<\/p>\n
“We’ve seen for 2 year rates, a good 50 basis point increase in wholesale rates and nearly 60 for the 3 year, since the Reserve Bank’s statement last year, so to date the moves we’ve seen with mortgage rates aren’t really keeping up with that yet.”<\/p>\n
Nick Tuffley says all banks are seeing similar impacts on their funding costs, leading them to pass on the increases to borrowers.<\/p>\n
“I think the key message for people is that period of really low interest rates, super low interest rates, has gone, but the market’s settling into a reality of the cash rate’s likely to be on hold for most of this year, but we’re past the lows now,”<\/p>\n
While tough for borrowers, savers will benefit from higher term deposit rates across the board, with banks looking to attract funding. Term deposit rates beyond the 9 month mark have had a significant adjustment, up anywhere between 5 and 35 basis points.<\/p>\n
“Not too long ago, you could get a 2 year mortgage for not less than 4 and 4.5 percent,” says Nick Tuffley.<\/p>\n
“Now you can put money on deposit for two years at 4% percent so quite a catch-up.”<\/p>\n