Major Bank Hikes Mortgage Rates

ASB Bank has increased its mortgage rates across the board, from one-year to five-year terms, by between six and 20 basis points, citing volatile global financial markets and rising wholesale rates. The move, reported by 1News on April 29, 2026, reflects broader trends in international markets as economies navigate an uncertain outlook.

The rate increases range from six basis points for one-year fixed rates to 20 basis points for five-year fixed rates. Specifically, the one-year rate now stands at 4.65%, the 18-month rate is 4.95%, the two-year rate is 5.25%, the three-year rate is 5.49%, the four-year rate is 5.69%, and the five-year rate is 5.89%, according to 1News.

“Global financial markets have been volatile, and ongoing geopolitical tensions have driven sustained increases in wholesale interest rates,” said Adam Boyd, ASB’s executive general manager for personal banking, in a statement reported by 1News. “These rates underpin lending and deposit pricing in New Zealand and reflect broader trends across international markets as economies navigate the current outlook.”

Wider Trend of Rate Hikes

ASB is not alone in raising mortgage rates. 1News reported that all of New Zealand’s other major banks have also increased their mortgage rates in recent weeks. This widespread adjustment suggests a collective response to the prevailing economic conditions and increased costs of borrowing.

The bank is also lifting term deposit rates for 12, 18, 24, and 48-month terms by between five and 20 basis points. This move aims to attract deposits and further stabilize its financial position amidst the fluctuating market conditions.

Support for Homeowners

Recognizing the potential impact of these rate increases on homeowners, ASB is encouraging customers who are feeling uncertain about their financial position to reach out for assistance. Boyd emphasized the value of discussing options and ensuring lending structures are aligned with individual circumstances, as reported by 1News.

The rate hikes come amid ongoing concerns about global economic stability and geopolitical tensions, which are contributing to increased volatility in financial markets. The adjustments reflect a broader effort by banks to manage risk and maintain profitability in a challenging environment.

The New Zealand financial landscape is currently navigating a period of adjustment, with banks responding to both international pressures and domestic economic factors. The recent increases in mortgage rates are likely to impact borrowers, particularly those with variable-rate loans or those looking to refinance.

ASB’s decision to raise rates underscores the sensitivity of the New Zealand economy to global financial trends. The bank’s statement highlights the interconnectedness of international markets and the challenges faced by financial institutions in maintaining stability during times of uncertainty.

The bank’s move is likely to be closely watched by other lenders in New Zealand, potentially signaling further adjustments to mortgage rates in the coming weeks. Homeowners and prospective buyers are advised to stay informed about market developments and seek professional financial advice to navigate the changing landscape.