Kiwibank last big lender to lift rates

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

Relevant offers

Money

Budget Buster: The science of pocket money Big Read: The digital revolution changing the way you manage your money Victims in short supply for Christchurch finance company’s offending Need a new phone cover? Shoot a possum, tan its hide, and make your own Giving up on buying a house? Don't blow your savings just yet Janine Starks: Ten ways to cure money madness Ask Kevin: Should we sign up with more than one agent? More Kiwis approaching retirement with money trouble Sorry, that's not traumatic enough - ombudsman warns of confusion over insurance Rob Stock: Don't scrimp on travel insurance

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