Higher home loan rates are announced by SBS Bank and these include a rise in their floating rate. Four 'specials' are increased too

SBS Bank has announced a series of home loan rate increases that will come into effect on Monday, February 27, 2017.

They are raising their ‘special’ six month fixed rate to 4.99%, an increase of +24 bps from 4.75%.

They are raising their ‘standard’ one year rate by +10 bps to 4.99%, but leaving their one year ‘special’ unchanged at 4.45%.

Their three year fixed ‘special’ is going up +14 bps to 5.25%.

Their four year fixed ‘special’ is rising by +20 bps to 5.65%.

And their five year fixed ‘special’ is up by +16 bps to 5.85%.

In addition, they are raising their floating rates. These are going up +11 bps for residential customers to 5.65%, and for customers on their advance equity loans to 6.85%.

Existing clients won’t see the floating rate rise until 27 March, 2017 although the new rates will be effective immediately for all new business.

To qualify for SBS Bank’s ‘special’ rates, they must only be for Residential and Residential Investing lending with a minimum of 20% equity (or greater when Residential Investing lending restrictions apply). Bank members can access them with any level of existing lending, but new customers require minimum lending of at least $100,000. They are not available with commercial or rural loans, or SBS Advance (Reverse Equity Mortgage) loans. They also require the borrower’s primary source of income to be paid into a SBS Bank transactional account.

SBS Bank floating rates only apply to residential owner-occupied lending. An additional +0.50% applies for residential investment properties.

SBS Bank last raised home loan rates on January 25, 2017 and a few days later when they withdrew their 4.19% one year ‘special’.

Today’s changes do not alter who has the leading carded rates for mortgage borrowers. HSBC Premier has the market leading position for all terms at this time except for 5 years where Westpac’s ‘special’ is lower. Other than HSBC Premier, ANZ now has the lowest rate for one year, the Co-operative Bank has the next lowest 18 month rate, and TSB Bank has the next lowest rates for all terms 2 to 5 years.

A review of the table below also shows that the TSB Bank ten year rate at 5.75% is currently an exceptional deal for borrowers who want to lock in long term and have the view that rates will continue to track higher.

See all banks’ advertised, or carded, home loan interest rates here.

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.39 5.05 4.79 5.49 5.70 5.85
ASB 4.59 4.75 4.79 5.09 5.49 5.69
4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.45   4.79 5.25 5.65 5.85
Westpac 4.59 5.05 4.79 5.09 5.69 5.49
4.55 4.70 4.85 5.25 5.55 5.75
HSBC 4.19 3.99 4.39 4.89 5.29 5.59
HSBC 4.45 4.75 4.75 5.25 5.65 5.85
4.45 4.75 4.75 5.05 5.45 5.50

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

TSB Bank has a ten year fixed rate of 5.75%.