Home loan rates fluctuating
The latest round of home loan price adjustments is proving to be a mixed bag, with banks offering a variety of rates and fluctuations expected for some time to come.
Last night Westpac increased its one-year rate from 5.25 per cent to 5.49 per cent, and its three-year rate from 5.75 per cent to 5.90 per cent.
On Sunday, ASB raised its six-month fixed rate from 5.25 per cent to 5.59 per cent, and its 18-month rate from 5.40 per cent to 5.55 per cent.
Meanwhile, sister banks ANZ and National cut their six and 18-month rates by 15-16 basis points, while increasing one and two-year rates by 25 and 11 basis points respectively.
The spate of moves came after Kiwibank re-introduced an aggressive 4.99 per cent six-month fixed "special" loan to those with 30 per cent equity in their property.
Squirrel mortgage broker John Bolton was wary of reading too much into the mixed movements, saying the oscillations were normal.
Wholesale swap rates, on which banks' funding is partly based, had risen by about half a per cent over the last month, he said.
"We see the banks responding to that in terms of their pricing positions."
The start of a shift from floating to fixed mortgages had helped push the rates up.
But the wholesale funding costs had dropped slightly in the last week, and Bolton said the low interest rate environment would probably be here to stay for quite some time.
Major banks' cheapest rates (excluding specials):
Six months: Kiwibank, 5.25 per cent
One year: TSB, 5.2 per cent
Eighteen months: ANZ National, 5.39 per cent
Two years: TSB, 5.3 per cent
Three years: ASB, 5.75 per cent
Five years: ASB, 5.99 per cent
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