With BNZ’s latest changes, that leaves only ASB to raise long-term fixed home loan rates as mortgage yield curve shifts to steepest in nine years


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BNZ is making a number of changes to its mortgage rate chart, with some short-term flat rate cuts and longer-term flat rate increases.

The possibilities to fix the particularly low five-year fixed interest rate are fading.


The BNZ six-month fixed interest rate is now 2.99%. That’s 40 basis points lower than the previous rate, which was not particularly competitive. Now it matches the offerings of ASB and Westpac, and has a clear rate advantage over ANZ (3.99%) and Kiwibank (3.55%).

What’s interesting about these ‘new’ levels is that short-term interest rates are merging around the levels that ASB pulled back at the end of April. But ASB’s longer-term fixed rate now looks ‘low’ and is about to be raised.

The yield curve for mortgages is steepening.

The lowest fixed-term rate is still 1.85% from Heartland Bank. And the highest fixed-term rate is ANZ’s new five-year rate of 4.39%. That’s the widest/steepest since 2012.

A helpful way to understand these 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.

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The graph ‘6 months %’ is drawn here.
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Here the graph ‘1 year %’ is drawn.
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Here the graph ‘2 year %’ is drawn.
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Here the graph ‘3 year %’ is drawn.
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Here the graph ‘4 year %’ is drawn.
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Here the graph ‘5 year %’ is drawn.
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