Second round of hikes in a week reshapes fixed‑rate options for borrowers
BNZ has lifted home loan pricing for the second time in a week, responding to higher wholesale funding costs and rising global risk.
The bank has now increased several longer‑term fixed mortgage rates twice in eight days, targeting borrowers who prefer to “set and forget” their repayments.
BNZ’s standard five‑year fixed rate now sits at 5.79%, up 0.40 percentage points from earlier levels, while the four‑year rate has climbed to 5.59%. Three‑year pricing is at 5.29% and the two‑year rate at 4.89%, Stuff, interest.co.nz, and 1News reported.
Shorter terms remain sharper. BNZ’s carded six‑month and one‑year fixed rates are unchanged at 4.49% and 4.59%, keeping the one‑year fix one of the more competitive offers among the major banks. Those with less than 20% equity will pay a low‑equity interest rate premium.
Major banks reposition on fixed terms and deposits
All of the big five banks have now moved in recent days. Market data show the majors aligned on six‑month and one‑year “carded” rates, while BNZ and Kiwibank sit at the lower end of advertised two‑year pricing and BNZ and Westpac share the lowest three‑year rate near 5.29%.
Accompanying the latest BNZ home loan rate rises are term deposit increases, with the bank lifting offers for one‑year to five‑year terms to around 3.7% to 4.7%, although it has stopped short of matching ASB’s recent 5% term deposit headline rate.
Global volatility and policy response pressure mortgage rates
BNZ’s moves are closely linked to global volatility and war‑driven fuel price spikes.
ASB executive general manager personal banking Adam Boyd (pictured) said wholesale interest rates “have remained volatile and continue to trend higher”, adding that “these movements reflect heightened global economic uncertainty and renewed pressures across global markets”.
Yesterday, Reserve Bank governor Anna Breman said higher wholesale rates and lower equity prices were “already tightening global financial conditions, meaning higher borrowing and financial costs for some households and firms”, and warned this could dampen growth in the near term.
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