Kiwibank last big lender to lift rates

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

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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.

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