Kiwibank last big lender to lift rates

RICHARD MEADOWS
Last updated 15:24 29/07/2014

Relevant offers

Money

NZ Super Fund chairwoman will not resign over boss Adrian Orr's pay rise despite Bill English anger Credit card panic starts at A$4113 across the ditch Seven ways being single helps your success - if you're a woman Staff pose biggest cyber threat to New Zealand businesses Living wage rises, amid call to do away with minimum 95-year-old WWII veteran a victim of an alleged scam involving his RAF pension Westpac argued contract allows it to release customer data Borrowers give up floating mortgages Kiwibank profits down, hit by funding pressure and earthquake costs Housing confidence survey shows buyers slowly more optimistic

Westpac, Kiwibank and TSB Bank have joined the rest of the pack and raised floating mortgage rates.

The Reserve Bank's official cash rate (OCR) increase on Thursday has again sparked a flurry of mortgage-rate hikes.

The latest to move is the state-owned Kiwibank, which raised its variable interest rates from 6.4 per cent to 6.65 per cent.
TSB also passed on the full 25 basis points, increasing its floating rates to 6.74 per cent.

That is the same pricing as ANZ and BNZ, and slightly lower than ASB's 6.75 per cent.

Westpac had deliberately held back from increasing rates for new customers following previous cash rate rises, but has now leapfrogged its rates 35 basis points to 6.59 per cent.

It still has the lowest advertised offer among the major banks.

Smaller banks including SBS/HBS, Heartland, and The Co-operative Bank are yet to move, with rates on offer between 6.15 and 6.45 per cent.

The majority of mortgage holders have now switched to fixed mortgage rates, which are less closely tied to the official cash rate.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content