ANZ, ASB, BNZ, Kiwibank, and Westpac leave borrowing buffers unchanged after rate rise
New Zealand's largest home lenders have confirmed their mortgage serviceability test rates remain unchanged despite the Reserve Bank's first official cash rate increase in three years, lifting the OCR from 2.25% to 2.5% last week.
ANZ NZ, ASB, BNZ, Kiwibank, and Westpac all told interest.co.nz their test rates, the buffer banks apply when assessing a borrower's ability to service a loan if rates rise, haven't moved as a direct result of the hike.
ANZ NZ's Servicing Sensitivity Rate sits at 6.85%, last adjusted on 22 April, well before the OCR decision. An ANZ NZ spokesperson said the rate "is just one tool we use to assess a home loan application," adding "we don't compete with other banks to offer lower test rates because the SSR is there to help protect customers when they borrow money."
ASB's test rate is also 6.85%, with a spokesperson saying the bank continually assesses its settings, noting they "remain appropriate." BNZ's test rate stands higher at 7.1%, while Kiwibank and Westpac are both sitting at 6.95%.
Why the buffers matter for borrowing capacity
A lower test rate generally means higher borrowing capacity for clients, since it reduces the assumed repayment burden banks stress-test against. With rates holding steady across five major lenders despite the OCR move, client borrowing capacity assessments shouldn't shift purely on the back of last week's decision.
That could change quickly, however: the gap between bank forecasts is wide. Westpac has brought its timeline forward, now expecting the OCR to peak at 4% by the September 2027 Monetary Policy Statement, three months sooner than previously pencilled in. ASB takes a more measured view, tipping 25 basis point hikes from September to reach roughly 3.25% by year end, while Kiwibank remains the outlier, arguing the case for further tightening hasn't yet been made.
Kiwibank was explicit on how it approaches this, with a spokesperson explaining that test rates factor in "wholesale rates, carded rates, and the OCR" together, and stressing that "test rates are not a prediction of future interest rates; instead, they give us the ability to check the customer can maintain their financial commitments."
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