Westpac bank has increased its fixed mortgage rates just a
day after rival bank ANZ lifted its rates.
Westpac said from today it would remove three special rates
and increase its normal rates by between 9 basis points and
34 basis points.
The biggest rise is in its two-year rate which has risen 34
basis points to 6.29 per cent for those with at least 20 per
cent equity and 6.89 per cent for those with less than 20 per
Yesterday ANZ also lifted its fixed rates by between 9 and 34
Its two-year fixed rates rose from 5.95 to 6.29 per cent for
standard borrowers and from 6.45 to 6.79 for low-equity
New Zealand home buyers had benefited from a period of stable
and historically low interest rates over the last three
years, an ANZ spokesman said.
But global and New Zealand economic conditions that influence
the level of interest set by banks were constantly changing.
"The rising cost of funding (both customer funding through
term deposits and wholesale funding) is increasing, and
therefore we must increase our home loan interest rates to
pass on this increased cost of funding," he said.
Asked if they planned to lift rates, both BNZ and ASB said
their rates were under constant review.
BNZ currently charges 5.95 per cent for its standard two-year
fixed rate for those with more than 20 per cent equity and
6.45 per cent for low-equity borrowers.
ASB also charges 5.95 per cent for a standard two years fixed
mortgage but currently has a special rate per cent of 5.59
per cent for two years for those who take out a credit card
and have their wages go into an ASB account.
Last week the Reserve Bank kept the official cash rate at 2.5
per cent but warned the rate would rise next year.
- By Tamsyn Parker of the NZ Herald