Kiwibank last big lender to lift rates

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

Relevant offers

Money

The $2 dollar per day dental budget Face Value: Born with the 'risk aversion' gene Online store takes photographer's $3000 for lens it never delivered, then leaves NZ House of Travel, Nakedbus drop 'opt-out' pricing: Jetstar still defiant Budget Buster: Ask and you shall receive Kiwi dream of bach ownership not about coining it Editorial: The erosion of the great Kiwi bach Real estate website data debunks Chinese buyer claims Retirement myths debunked Thousands of bach owners caught up in property investor crackdown

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