More banks lift fixed home loan rates

RICHARD MEADOWS
Last updated 12:03 27/06/2014

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The Bank of New Zealand and Westpac have followed ASB's lead and raised most of their fixed mortgage rates.

The Reserve Bank's official cash rate increase earlier this month was expected to prompt fixed-rate hikes, on top of the usual movement in floating mortgage rates.

That was because the central bank stuck firmly to its scheduled series of increases, surprising the market and putting pressure on longer-term wholesale interest rates.

ASB was the first major bank to blink, raising all its short-term fixed rates on Monday.

BNZ followed suit, raising several fixed rates by 14 to 34 basis points, and scrapping its two-year hero rate.

This morning Westpac also raised all its shorter-term rates by 5 to 20 basis points.

However, the bank lowered its three-year rate to 6.69 per cent, and kept its four-year rate unchanged.

Westpac also lowered its standard five-year rate to 6.99 per cent, falling in line with both ASB and BNZ.

The best rates on offer:

Six months: 5.49 per cent - ANZ

One year: 5.7 per cent - TSB

18 months: 5.85 per cent - TSB

Two years: 5.99 per cent - SBS/HBS and TSB

Three years: 6.25 per cent - BNZ, SBS/HBS, and The Co-operative Bank

Four years: 6.75 per cent - The Co-operative Bank

Five years: 6.79 per cent- SBS/HBS

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