The largest increase is to ASB’s five-year mortgage rate, which jumps 20bps to 5.89%.
Adam Boyd, ASB’s executive general manager personal banking, said volatile global financial markets and ongoing geopolitical tensions had driven wholesale interest rates increases.
“These rates underpin lending and deposit pricing in New Zealand and reflect broader trends across international markets as economies navigate the current outlook.
“We encourage any home owners feeling uncertain about their position to get in touch. There is real value in talking through your options and ensuring your lending structure is working for your circumstances.”
New Zealand Banking Association data shows more Kiwis are getting ahead on their mortgage repayments.
In the last six months of 2025, 42.9% of home loan customers were paying more than their minimum loan repayments, up from 40.3% in the first half of the year.
Just 1.4% of home loans were behind on their loan repayments.
Yesterday, TSB said its special fixed two-year mortgage rate would increase 10bps to 5.19%.
Its three-year special rate was hiked 20bps to 5.49%, while its four-year special term increased 14bps to 5.69%.
The Reserve Bank (RBNZ) will make its next Official Cash Rate (OCR) decision on May 27.
Economists at ANZ, ASB and Infometrics have brought forward their OCR forecasts in recent weeks, with expectations the RBNZ will announce three hikes this year, taking the OCR from 2.25% to 3%.
While economists see July as the most likely starting point for an OCR hike, they aren’t ruling out the possibility of one coming in May.
Not everyone agrees, with Kiwibank economists warning that raising interest rates too soon could be “reckless” and “risks a repeat of past mistakes, potentially inducing a recession”.
Instead, they maintain a “wait and see” approach through most of this year.
