ANZ hikes fixed mortgage rates

RICHARD MEADOWS
Last updated 11:42 17/12/2013

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ANZ has lifted all its fixed mortgage rates for both low-equity and regular borrowers, and withdrawn an existing special deal.

Effective today, the bank's rates have increased from between nine and 34 basis points.

The two-year fixed rate took the biggest jump from 5.95 per cent to 6.29 per cent for ordinary borrowers, and from 6.45 per cent to 6.79 per cent for those with low equity.

ANZ also cancelled its special 4.95 per cent one-year fixed rate for borrowers with 20 per cent equity.

Over the last month, the swap rates which the banks partly use to determine home-loan pricing have risen about 20 to 30 basis points.

Last week the Reserve Bank held the official cash rate at 2.5 per cent, but warned that it could rise by 2.25 percentage points over the next two and a quarter years.

Borrowers could expect floating mortgage rates to jump from below 6 per cent now, to about 8 per cent or higher as a result.

Mortgage rate changes tend to happen in clusters, so it was likely other banks will follow ANZ's lead.

ANZ also increased several of its term-deposit rates by 10-25 basis points each, benefiting savers.

A $10,000 deposit locked in for four years would earn 5.25 per cent, up from 5 per cent.

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- © Fairfax NZ News

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