The bank has inverted its rates in reaction to ASB’s shift to an inverted mortgage rate card
Westpac has shifted to an inverted mortgage rate card, in reaction to a similar move from ASB.
Just this week, ASB reduced its five-year mortgage rate lower than its one-year option, an unusual move that signals interest hikes may slow soon.
Westpac has also inverted and matched ASB at the long end but has been much less aggressive with increases at the short (high-volume) end, leaving ASB somewhat exposed.
Westpac lifted its 12- and 18-month home loan rate by +10 bps, putting them -25 bps and -20 bps lower than the new ASB level, interest.co.nz reported.
Westpac’s two-year rates, meanwhile, matched those of ASB.
The changes meant only BNZ and Kiwibank now have rates lower than Westpac among the main banks. None of the main banks though were still anywhere near Heartland Bank’s loan rate card, none of which are over 6%.
The challenger banks were all still very competitive for mortgage rates of two years or less.
Interest.co.nz provided an updated snapshot of the lowest advertised fixed-term rates on offer from key retail banks:
|
fixed, below 80% LVR |
6 mos. |
1 yr |
18 mos. |
2 yrs |
3 yrs |
4 yrs |
5 yrs |
|---|---|---|---|---|---|---|---|
|
as of Jan. 23 |
% |
% |
% |
% |
% |
% |
% |
|
|
|
|
|
|
|
|
|
|
6.60 |
6.54 |
6.64 |
6.74 |
6.84 |
7.54 |
7.64 |
|
|
ASB |
6.84 |
6.84 |
6.79 |
6.79 |
6.69 |
6.59 |
6.49 |
|
BNZ |
6.49 |
6.49 |
6.59 |
6.59 |
6.69 |
6.79 |
|
|
Kiwibank |
6.50 |
6.39 |
|
6.65 |
6.79 |
6.79 |
6.79 |
|
Westpac |
6.59 |
6.59 |
6.69 |
6.79 |
6.59 |
6.49 |
|
|
|
|
|
|
|
|
|
|
|
Bank of China |
|
6.15 |
6.25 |
6.35 |
6.35 |
6.55 |
6.65 |
|
China Construction Bank |
6.60 |
6.54 |
6.64 |
6.74 |
6.84 |
6.85 |
6.85 |
|
Co-operative Bank [*FHB special] |
6.39 |
6.29* |
6.39 |
6.59 |
6.69 |
6.79 |
6.79 |
|
Heartland Bank |
|
5.89 |
5.99 |
6.05 |
5.95 |
|
|
|
HSBC |
6.44 |
6.44 |
6.59 |
6.69 |
6.79 |
7.29 |
7.39 |
|
ICBC |
6.29 |
6.25 |
6.35 |
6.45 |
6.65 |
6.85 |
6.85 |
|
sbs Bank |
6.39 |
6.39 |
6.49 |
6.54 |
6.59 |
6.65 |
6.69 |
|
TSB |
6.29 |
6.29 |
6.39 |
6.49 |
6.65 |
6.75 |
6.79 |
What do you think about Westpac’s latest move? We’d love to hear from you in the comments below.
