ANZ was the first major bank to lift its rates today in the wake of the Reserve Bank’s move last Wednesday to increase the official cash rate by 75 basis points to 4.25 percent.
Westpac’s floating and offset rate will rise 64 basis points to 7.99 percent.
Its standard fixed-term mortgage rates will rise by 40 to 50 basis points, with the one-year rate set to rise to 7.09 percent and the two-year rate to 7.29 percent.
Like ANZ, all of Westpac’s standard fixed-term rates will rise to over 7 percent.
While its special rates remain under 7 percent, borrowers have to have a minimum of 20 percent equity or deposit to access those. The special fixed-term one-year rate will rise to 6.49 percent and the two-year rate to 6.69 percent.
Westpac will also increase its saving and term deposit rates. Its one-year term deposit rate will rise 60 basis points to 5.1 percent.
It will pass on the full 75 basis points to some savers, with interest rising on its notice saver account rising to 3.6 percent and its bonus saver/PIE (portfolio investment entities) fund rising to 3.35 percent.
Earlier this month Westpac chief executive Catherine McGrath told The New Zealand Herald about 50,000 Westpac New Zealand home loan customers would come off a fixed-term rate of less than 4 percent and move on to a higher rate in the next six months.
But she was confident the bank had plans in place to support them.
It had changed its outreach approach for customers rolling off a fixed rate.
“We are getting in touch with them earlier, so that’s at 75 days before that interest rate is likely to go up. We also let them rate lock from 60 days,” McGrath added.
“We are working with customers to help them think through what they can do to make sure they are resilient as their borrowing costs go up.”
On top of that it will zero in on around 1000 customers a month who had very large increases, she said.
“We will be contacting them in person and giving them a call to see what we can do again to make sure we can help.”
