ASB leads with new fixed rate hikes

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The pressure of wholesale rates has prompted one of our largest real estate lenders to increase some key fixed rates and define their market offers as the highest available.

ASB may have decided not to increase its variable rate to give some clients “peace of mind”, but this clearly does not apply to fixed rate home loan borrowers.

This major mortgage increased the fixed rates for four terms as follows:

Over one year, the increase is +14 bps at 2.99%. This makes it the highest one-year fixed rate among the Big Five banks and now the highest of all banks for that fixed term.

For eighteen months the increase has been +20 basis points to 3.29% and also a market high for any bank.

For a two-year term, the story of the market’s high is the same, increasing its rate by +20 basis points to 3.45%.

And for the past three years, the new ASB rate has been 3.69%, an increase of +14bp and also higher than anyone else.

The driving force is the relentless rise in wholesale swap rates, a rise that other rival banks will not be able to avoid either. See the swap rate tables below.

These rates are at or near their highest since May 2019 – and at the time, the average one-year bank rate was 3.90%, the two-year rate was 3.95%, and the three-year rate. 4.05% years. For equivalent wholesale rates, today’s retail rates appear low in comparison.

A useful way to make sense of these modified home loan rates is to use our complete mortgage calculator which is also below. (The rates for term deposits can be estimated using this calculator).

And if you already have a fixed-term mortgage that is not currently up for renewal, our break cost calculator can help you assess your options. But breakage fees should be minimal in a rising market.

Here is the updated snapshot of the lowest advertised term mortgage rates currently offered by major retail banks.

Select the tabs of the chart


Select the tabs of the chart


Complete mortgage calculator


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