The Red Bank raises all its floating mortgage rates to the highest in the market, even as wholesale rates slip. They offer an 8 month TD 'special' as a salve

Despite today’s sharp fall in wholesale rates, Westpac has announced a rise in their floating mortgage rates.

They are all up +11 bps.

That takes their floating rates to 5.95%, the highest floating rate in the market at this time and the highest level since December 2015 (when it was 6.00%).

Westpac’s changes for the mortgage rate are effective for new customers on 16 June 2017, and for existing customers on July 7, 2017.

For perspective, here is the recent change history for Westpac’s floating rate product:

Westpac change history Change Floating
  % %
Start of 2016   5.85
March 10, 2016 (the -25 bps OCR reduction) 0.00 5.85
March 11, 2016 -0.10 5.75
August 12, 2016 -0.10 5.65
August 16, 2016 (the -25 bps OCR reduction) 0.00 5.65
November 22, 2016 (the -25 bps OCR reduction) 0.00 5.65
February 9, 2017 (the no-change OCR decision) 0.00 5.65
March 1, 2017 +0.10 5.75
March 23, 2017 (the no-change OCR decision) 0.00 5.75
April 6, 2017 +0.09 5.84
May 11, 2017  (the no-change OCR decision) 0.00 5.84
June 16, 2017 +0.11 5.95

Here is a snapshot of the current floating rates offered by key retail banks and their recent change history:

below 80% LVR as at
Dec 31, 16
as at
Jan 31, 17
as at
Mar 31, 17
as at
Jun 15, 17
      %  
5.59 5.69 5.79 5.79
ASB 5.65 5.80 5.80 5.80
5.64 5.79 5.90 5.90
Kiwibank 5.25 5.40 5.55 5.70
Westpac 5.65 5.65 5.75 5.95
         
5.55 5.55 5.65 5.75
HSBC 5.59 5.59 5.59 5.79
HSBC 5.59 5.54 5.79 5.79
5.54 5.54 5.65 5.80

Westpac has launched a 3.50% eight month term deposit  ‘special’ term. How long that is available has not been advised.

All current mortgage rates are here.

All current term deposit rates are here and here.