Kiwibank's rates follow Aust banks

Last updated 05:00 23/12/2013

Relevant offers

Money

Owner pleased after historic yacht with $1 reserve sells for $480,000 Businessman tied to ACC bribery in 'dire financial position' Rob Stock: You have a secret cash source Karen Scott-Howman: Customers drive banking innovation Budget Buster: How to nail your 2017 money goals How to survive a mid-life career crisis Left your cash at the ATM? You're paying the Vague Tax Young Kiwis put money on house deposit should they win $100,000 Young millionaire travels the world but hasn't spent a cent of his fortune Kiwis warned about email competitions offering prizes from NZ businesses

Kiwibank has followed the lead of ANZ and Westpac and hiked its mortgage rates, blaming the rises on higher funding costs.

Effective today, the state-owned bank's one-year fixed home loan rate rose 20 basis points to 5.45 per cent and its two-year rate rose 30 basis points to 5.95 per cent.

Borrowers with less than 20 per cent equity will have to pay 6.29 per cent for the same two-year loan.

Kiwibank's move follows similar hikes from ANZ and Westpac last week.

ANZ lifted all its fixed mortgage rates for both low-equity and regular borrowers by nine to 34 basis points, and withdrew an existing special deal.

Westpac lifted all but one of its fixed rates.

Over the past month, the swap rates that the banks partly base their home-loan pricing on have risen by roughly 20 to 30 basis points.

In good news for savers, the higher rates have also pushed up the amount the banks are willing to pay on term deposits.

Kiwibank increased some of its term deposit rates by 25-30 basis points, while ANZ increased some of its rates by 10-25 basis points.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content