Westpac last to raise rates

Last updated 15:19 20/03/2014

Relevant offers

Money

Insurance champion wants others to learn from his inspirational father Top tips to buy a house at a great price New report shows bank profits up, possible cost increase for customers Janine Starks: Here's how to achieve financial freedom Your choice: That morning coffee or a ticket to London Rob Stock: Learning from obese woman's tragic insurance mistake Health Star rating system 'may mislead shoppers' NZ Mint seals $60m export deal to China Ticks, stars and 'no's: What do food labels mean? Use crowd power for better electricity deal

Westpac is the last bank to raise its floating mortgage interest rates after the Reserve Bank increased the official interest rate a week ago.

Westpac said it would raise floating home-loan rates by 25 basis points after the Reserve Bank's official cash rate (OCR) rise from 2.5 per cent to 2.75 per cent.

However, Westpac's rate for mortgage customers with a loan-to-value ratio of less than 80 per cent would experience only a 10 basis-point rise in interest rates to 5.74 per cent.

Customers with savings would see the benefits of the OCR rise with Westpac raising 90-day term deposit rates by 25 basis points.

However, rates for key online savings accounts would rise by only 20 basis points.

The floating rate changes would take effect from tomorrow for new customers and from April 11 for exiting customers.

The increase to interest rates for online savings accounts will take effect from April 11.

Other New Zealand banks had already passed on interest rate rises, with ANZ raising rates last week just hours after the Reserve Bank's move.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content