Major banks are continuing to adjust mortgage rates in response to rising global financial pressures. ASB has moved to adjust its lending rates, increasing its two- and three-year fixed home loan rates by 14 and 20 basis points to 5.09% and 5.39%, respectively. At the same time, the bank reduced its six-month rate by 10 basis points to 4.49%. It also raised term deposit rates by up to 50 basis points across 12-month to five-year terms.
The bank made it clear that these decisions are being driven by “volatile” wholesale interest rates that continue to trend higher.
Kiwibank followed suit, lifting its special one-year rate for borrowers with 20% equity by 10 basis points to 4.59%. Its three-, four-, and five-year rates also rose by 10 basis points to 5.35%, 5.79%, and 5.89%, respectively, with standard rates increasing as well. Term deposit rates were also lifted across one- to five-year terms.
These changes come after similar moves by other major lenders. Westpac had already increased its one-year rate by 10 basis points to 4.59%, while its two- and three-year rates rose by 30 basis points to 5.19% and 5.29%. BNZ, likewise, raised multiple rates, including its two-year rate by 20 basis points to 4.89% and its five-year rate to 5.69%.
ANZ, the country’s largest bank, also confirmed increases across its fixed home loan products. Its 18-month-to-five-year rates rose by 20 basis points, while the one-year rate increased by 10 basis points. Its one-year special rate now sits at 4.59% and its two-year special at 5.09%, with standard rates rising to 5.19% and 5.69% for one- and two-year terms.
These increases come as households face mounting cost pressures, driven in part by surging fuel prices linked to geopolitical instability, including tensions surrounding Iran.
Reserve Bank governor Anna Breman has acknowledged the shifting economic landscape, noting she would address how developments in the Middle East are impacting New Zealand’s economy in a speech to Business NZ’s CEO Forum in Auckland.