ASB Bank has raised its floating mortgage rate to 7.2 per cent from 6.7 per cent, blaming the rise in the 90-day bank bill yields.
The lending rate increase takes effect immediately for new home loans and from April 15 for existing loans.
On a table mortgage of $100,000 over a 20
year term, this equated to an increase of $30.05 per month, the bank said.
It also noted fixed rate loans had been raised over the past few weeks to reflect changes in the wholesale interest rate market.
ASB is offering six month fixed loans at 6.95 per cent, one year at 7.35 per cent, two year at 7.9 per cent, three year at 8.25 per cent, four year at 8.4 per cent and five year at 8.6 per cent.
"Term investment rates are also set to rise off the back of these movements in wholesale interest rates," the bank said.
A spokesman for Kiwibank, which announced a floating rate of 6.1 per cent when it launched last month, said it was reviewing its rates.
- NZPA
