Kiwibank has become the third bank in a week to lift its
Kiwibank said from today it would increase its one-year home
loan rate from 5.25 per cent to 5.45 per cent while its
two-year rate would increase from 5.65 per cent to 5.95 per
cent for borrowers with at least 20 per cent equity.
Borrowers with less than 20 per cent equity will have to pay
6.29 per cent per annum for the two-year fixed rate.
Kiwibank said it had lifted rates because of increased costs.
"The changes have been made as a result of increased costs of
wholesale funding," the bank said in a statement.
Kiwibank's move follows that of ANZ and Westpac which lifted
mortgage rates last week by between 9 basis points and 34
Westpac increased its two-year rate 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 cent equity.
ANZ boosted its two-year fixed rate from 5.95 to 6.29 per
cent for standard borrowers and from 6.45 to 6.79 for low
Both ASB and BNZ have said their rates are under constant
Earlier this month the Reserve Bank kept the official cash
rate at 2.5 per cent but warned the rate would rise next
The mortgage rate changes are a blow to borrowers but savers
are finally seeing some benefits.
Kiwibank said it would also increase its term deposit rates.
It has lifted its two-year rate by 25 basis points,
three-year rate by 30 basis points and four-year rate by 25
basis points. The rates on its term deposits range between
4.65 per cent and 5.25 per cent.
ANZ also increased its deposit rates last week by between 10
basis points and 25 basis points. Its two-year term deposit
rate is now at 4.75 per cent.
- Tamsyn Parker of the New Zealand Herald