The nation’s largest mortgage lender cuts rates by two and raises three as another round of home loan interest rate changes grips the housing market. Those left behind will undoubtedly follow


img

Now our largest mortgage lender has cut two key mortgage rates.

ANZ has cut its one-year fixed rate by -6 basis points to 2.19% and its 18-month fixed rate to 2.35%, a -10 bp segment.


But that one-year rate had already been adopted by kiwi bank in the past week.

However, ANZ is the only major bank with an 18-month interest rate of 2.35%.

At the same time, ANZ has increased its 3-year yield by +10bp to 2.99% matching kiwi bank and westpac.

But both ASB (2.89%) and BNZ (2.79%) both have lower three-year interest rates.

The Cooperative Bank has also changed rates, lowering an 18-month rate and increasing them for 3, 4 and five years.

In the wholesale markets, rates are falling on the short side and are likely to remain low with the support of the RBNZ.

But things are less certain in the long run, with volatile signals in wholesale markets. It’s still much less certain where these longer rates will end up, but there’s a range of mounting pressures around.

At the moment there is an 80 bps difference between one and three year rates, and another 100 bps up to five years. These differences could disappear in a year or two, or more likely, short-term interest rates could rise quite quickly to the current three-year rate. Banking economists and the RBNZ are clearly up +100 basis points over the next year or so.

So three and five year yields look attractive right now if you have a long-term perspective.

A useful way to understand these new changed mortgage interest rates is by using our full-fledged mortgage calculators. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed-term mortgage that cannot be extended at the moment, our break allowance calculator can help you assess your options.

Here’s the updated snapshot of the lowest advertised fixed-term mortgage rates currently offered by the major retail banks.

Updated with a change in BNS. More here.

Select chart tabs »

The graph ‘6 months %’ is drawn here.
Loading…

unweighted

Here the graph ‘1 year %’ is drawn.
Loading…

unweighted

Here the graph ‘2 year %’ is drawn.
Loading…

unweighted

Here the graph ‘3 year %’ is drawn.
Loading…

unweighted

Here the graph ‘4 year %’ is drawn.
Loading…

unweighted

Here the graph ‘5 year %’ is drawn.
Loading…

unweighted

This div height required for enabling the sticky sidebar