Mortgage Rates

With swap charges rising relentlessly and an anticipated OCR hike due tomorrow, New Zealand’s largest mortgage lender has hiked fastened house mortgage charges throughout the board

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ANZ has pushed ahead with the increase in the official cash rate (OCR) expected on Wednesday with increases in mortgage interest rates for home loans with effect from Tuesday.

It has increased its one-year fixed interest rate “special” by +14 basis points to 2.69%, its 18-month fixed interest rate by +15 basis points to 2.89% and its two- and three-year “special interest rate” by +10 basis points each 3.05% and 3.25%, respectively.

ANZ last increased rates 13 days ago in general.

ANZ fixed-rate mortgage specials are available to customers with a minimum capital of 20% and an ANZ transaction account with direct salary credit. Otherwise, standard interest rates apply, which are +60 basis points higher.

ANZ may be at the top of the RBNZ (just like the ASB did before the last OCR review), but in reality they respond to increases in wholesale tariffs. You can see the recent activity in the interactive graph below, which shows the relentless rise in one-, two-, and three-year swap rates recently.

The RBNZ is unlikely to mind increasing New Zealand’s largest mortgage lender. She will see the market do the job for her, and if these rate hikes spread, she might be tempted to hold back some of her rate hikes. Obviously not all, but it can dampen the impulse to go with a double surge.

These wholesale swap rate increases have been strong. In the last 60 days the one-year swap rate has increased by +75 basis points, in the last month by +50 basis points.

The increases that ANZ is pushing through do not absorb all of these wholesale increases. So maybe more is coming.

ANZ also increased term deposit rates, with the six-month rate increasing +10 basis points and the one-year TD rate increasing +20 basis points.

One useful way to understand these changed mortgage rates is to use ours Full-featured mortgage calculator. (Time deposit rates can be calculated using this calculator).

And if you already have a fixed-term mortgage that shouldn’t be renewed at this point, ours Break fee calculator can help you assess your options. Break fees should be minimal in a rising market.

Here is the updated snapshot of the currently lowest advertised mortgage rates from the major retail banks.

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