A major bank is lifting its mortgage interest rates from tomorrow.
A major bank is lifting its mortgage interest rates from tomorrow.
One of the country’s big five banks is lifting mortgage interest rates on its one- to five-year terms.
Westpac said this morning the home lending and term deposit rates would increase from tomorrow.
The one-year and 18-month rate will rise 0.10% and 0.16% to 4.59% and 4.85% respectively,and the two- and three-year rates by 0.30% to 5.19% and 5.29% respectively.
The four-year rate will be 5.39% - up 0.20% - from tomorrow, and the five-year rate 5.59%, up 0.30%.
Interest rates are going up because wholesale rates had “increased significantly in recent weeks”, a Westpac leader says. Photo / Alex Burton/Portable Images
ANZ, BNZ and Kiwibank now have the cheapest one-year mortgage interest rate, at 4.49%, with ASB on 4.59%, the same rate Westpac will move to tomorrow.
Leading the two-year rate is BNZ, on 4.69%, with ANZ and Kiwibank on 4.89% and ASB on 4.95%, according to interest.co.nz.
In the five-year category, BNZ again leads with an interest rate of 5.29%, compared to ASB’s 5.69%, Kiwibank’s 5.79% and ANZ’s 5.99%.
Westpac NZ product, sustainability and marketing managing director Sarah Hearn said the rise was because wholesale rates had “increased significantly in recent weeks”, upping funding costs for lenders.
“With today’s changes we are absorbing some of those increased costs, and also passing on higher rates to our savings customers, including the best 1-year term deposit rate of the five biggest banks as of Tuesday morning.”
The bank encouraged borrowers and savers to get in touch to talk the best options for them, she said.
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