Adam Boyd, ASB’s executive general manager personal banking, said fixed home loan rates are influenced by several market factors, particularly wholesale interest rates.
“Today’s changes reflect the reality of our higher wholesale interest rate environment,” he said.
The bank said longer term wholesale interest rates have increased by more than 50bps since the November 2025 Official Cash Rate (OCR) announcement, driving up the cost of providing fixed home loans.
Boyd said the upward movement was good news for savers, with term deposit rates for two years and above starting from 4%.
Interest rates on all term deposits from nine months to five years rose – the largest being a 35bps increase to the two-year rate, taking it from 3.65% to 4%.
Last week, both ANZ and BNZ made changes to their lending rates.
ANZ cut its special six-month fixed home loan rate to 4.49% – the equal lowest among the big banks.
Its two- and three-year special rates rose to 4.89% and 5.19% respectively.
BNZ lowered its six-month mortgage rate by 20bps to 4.49%.
However, its five-year rate rose 40bps to 5.69%, while its four-year offering increased 26bps to 5.55%.
And last month, Westpac cut its special six-month home loan rate by 20bps to 4.49%.
The bank’s two-year special rate increased 14bps from 4.755 to 4.89%.
Its three- and four-year special mortgage rates rose 10bps to 5.155 and 5.39% respectively.
The new Reserve Bank Governor, Anna Breman, will make her first OCR decision – and the first for the year – next week.
The OCR was cut by 25bps to 2.25% in November.
