Rate rises keep coming for mortgages. These latest allow TSB Bank to hold on to near market-leading claims for terms of two years and longer

The next bank to announce fixed mortgage rate increase is TSB Bank, who have made across the board changes today (Wednesday, February 1, 2017).

They have raised both their Standard and the Special rates.

A minimum deposit of 20% is required for home loan ‘special’ interest rates. The details that follow all relate to these rates.

There was no change made to either their shortest 6 month rate, which remains at 4.75%, or their longest rate, a unique ten year fixed offer, which remains at 5.75%.

However, TSB Bank’s one year rate has been raised by +20 bps to 4.45%.

Their 18 month rate has been raised by +30 bps to 4.75%.

And their two year rate is up +16 bps to 4.65%.

For three years, the rise is +30 bps to 4.99%, while the four year rate is up a similar amount to 5.40%.

For five years fixed the hike is a little less at +16 bps to 5.45%.

There were no equivalent term deposit rate changes made at this time

Wholesale money costs are rising and putting margin pressure of banks. The margin pressure banks claim is mostly real.

Today’s changes do alter who has the leading carded rates for mortgage borrowers. HSBC Premier has the market leading position for all terms at this time. Other than HSBC Premier, the banks who now have the lowest bank rates include Kiwibank (2 rates), the Co-operative Bank (1 rate), TSB Bank (4 rates).

See all banks’ carded, or advertised, home loan 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 
  % % % % % %
4.45 5.05 4.75 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 4.35   4.65 5.05 5.55 5.65
Westpac 4.49 5.05 4.79 5.09 5.69 5.49
             
4.55 4.70 4.85 5.15 5.55 5.65
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.45 4.75 4.75 5.09 5.45 5.69
4.45 4.75 4.65 4.99 5.40 5.45

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% and that is unchanged in today’s update.