ASB and BNZ are the latest major banks to raise some longer-term fixed mortgage rates.
They have also both lowered their six-month fixed rate.
ASB said the increases were in response to longer term wholesale rate movements.
"While today’s adjustments reflect the reality of higher funding costs, the change in market conditions is good news for some of our savers with term deposit rates increasing by up to 35 basis points" said Adam Boyd, ASB executive general manager of personal banking.
He said fixed mortgage rates were influenced by a variety of different market forces, including customer deposit rates, operating costs, the cost of overseas funding and wholesale interest rates.
Variable rates were connected to the official cash rate - which was lowered to 2.25% at the final monetary police committee meeting last month - while fixed rates were influenced by wholesale markets - the price banks pay to buy the money they lend out.
ASB raised its rates for 18-month to five year terms by between 20 and 30 basis points.
Its 18-month term is now 4.65%, two-year term is 4.75%, three-year term 5.09%, four-year term 5.39% and five-year term 5.45%.
It dropped its six-month term 20 basis points to 4.65%.
It also dropped its one, two and three-month term deposit rates for savers, and increased those between six and 60-months.
BNZ also lowered its six-month fixed home loan rate 10 basis points to 4.69%, while lifting its 18-month to five-year rates by between 19 and 30 basis points.
Its 18-month fixed home loan rate is now 4.64%, two year is 4.69%, three-year is 5.09%, and four and five-year terms 5.29%.
Earlier moves by banks to lift some rates prompted Finance Minister Nicola Willis to tell New Zealanders that, when it comes to their mortgage: “Shop around”.
“Don't just look at the headline rates. Go and hold your bank's feet to the fire. See if another bank will give you a better rate.”
The morning's headlines in 90 seconds, including more banks hike mortgage rates, a court appearance over a Hollywood murder, and a ‘c bomb’ earns quote of the year. (Source: 1News)
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