Fixed mortgage rates are rising
ANZ raises its fixed mortgage rates to the highest in the current mortgage market, supported by higher key rates which are pushing wholesale rates higher
ANZ has increased its fixed rate offerings for all terms to three years.
Their new one-year rate is up +30 basis points to 4.85%, a level that matches Kiwibank’s recent change.
Their two-year fixed rate is up +10 basis points to 5.35%, and their three-year rate is up a similar +10 basis points to 5.65%. At these levels, these are all the highest “specials” in today’s home loan market.
And they’re likely signaling where their main rivals will be moving soon.
ANZ is New Zealand’s largest property lender, in fact our largest bank.
The move was advised minutes after the Reserve Bank of Australia surprised markets with an official rate hike of +50 bps. It was one more than expected. look at this.
The RBA’s decision will increase wholesale rates regionally, including for New Zealand. The RBA’s decision came after the wholesale rate markets closed here today.
Wholesale swap rates have trended higher recently, but that’s after they detoured international trends, a drop that most banks didn’t follow with fixed rate cuts. at the time.
Internationally, signals from the central bank indicate that strong rate hikes are coming from most reviews last September, so wholesale markets are pricing them in and that may well have a strong influence on the levels of the local interest rate swap market.
ANZ also raised its term deposit rate offers, between +10 bps and +30 bps. Their new 6-month rate becomes 2.50% and their new 1-year rate becomes 3.15%. But unlike others, ANZ still doesn’t have a term deposit offer of 4% or more.
A helpful way to make sense of these home loan rate changes is to use our full function mortgage calculator which is also below. (Term deposit rates can be estimated using this calculator).
And if you already have a fixed-term mortgage that is not up for renewal right now, our break cost calculator can help you assess your options. But break fees should be minimal in a rising market.
Here is the updated overview of the lowest advertised fixed term mortgage rates currently offered by major retail banks.