Major New Zealand banks update mortgage rates
ANZ, BNZ and Westpac updated their mortgage rates following the announcement of the new rates by ASB, ending the downward trend in rates.
ASB hiked its mortgage rates ahead of the Reserve Bank of New Zealand’s (RBNZ) monetary policy review and official cash rate (OCR) announcement, with the one-year fixed mortgage rate rising from 2.19% to 2.55%. The two-year fixed interest rate also rose from 2.59% to 2.95%. Meanwhile, interest rates rose 0.30% for six months, 18 months, three years, four years, and five years.
Now ANZ has announced that it has increased its one-year rate by 31 basis points to 2.5%, its two-year rate by 31 basis points to 2.9% and its three-year rate by 25 basis points to 3.24%, NZ Herald reports.
An ANZ spokesman said in a statement that the bank had increased its mortgage rates “in response to a number of market factors,” particularly progressive increases in wholesale rates.
BNZ has also increased its one-year rate by 36 basis points to 2.55%, its two-year rate by 40 basis points to 2.95% and its three-year rate by 26 basis points to 3.25%.
Westpac followed in the footsteps of the three banks – increasing the one-year rate by 36 basis points to 2.55%, the two-year rate by 30 basis points to 2.89% and the three-year rate by 30 basis points to 3.29%.
Read more: Industry publishes forecasts after OCR announcement
In contrast, the Kiwibank lowered the interest rate on two-year home loans to 2.49% in order to “give its customers security” in an environment of rising interest rates. The variable interest rate also changed from 3.4% to 3.75% and is still below all major competitors.
“We challenged the market by narrowing the price difference between fixed and floating rates and giving our customers more flexibility, choice and savings. In a time of uncertainty, we wanted to give kiwis the ability to repay their loans faster, save or buy locally and support our economy, ”said Steve Jurkovich, CEO of Kiwibank.
“I am proud that, as a challenger, we offer Kiwi a real alternative to Australian banks and support the growth and progress of all New Zealanders.
“We will continue to pursue our goal of leading the New Zealand financial services industry by being a better banking alternative, committed to being fair and easy to Kiwi, the companies that own them and future generations.”
A bank cut interest rates to give customers “security” in an environment with rising interest rates