Westpac lifts mortgage rates, third bank to do so this week

Westpac has joined Kiwibank and BNZ in lifting their mortgage rates this week. Photo / 123RF

Westpac has joined Kiwibank and BNZ in lifting their mortgage rates this week.

From tomorrow, Westpac is lifting its standard rates for its two-year and four-year mortgages to 7.59 per cent and 7.19 per cent respectively, up 10 basis points.

The 18-month and five-year standard home loan rates have been bumped up 14bp to 7.69 per cent and 6.99 per cent respectively.

The changes reflect elevated and volatile wholesale rates which Westpac uses to fund its home lending, the bank said.

Westpac said it is working closely with customers to help them manage cost of living pressures.

“We understand this may be a worrying time for homeowners due to [them having to] re-fix their mortgage. We’re proactively contacting home loan customers and people who may be facing into financial difficulty to ensure they’re well-supported and understand their options,” a spokesperson said.

Westpac also lifted its nine-month deposit rate to the highest amongst its competitors (6 per cent).

On Monday, Kiwibank lifted both its mortgage and deposit rates - the first major bank to do so following last week’s strong GDP result.

The bank lifted its standard rates for one-year and two-year mortgages to 8.15 per cent and 7.99 per cent respectively (from 7.99 and 7.89).

The two-year special rate (for borrowers with more than 20 per equity) rose from 6.89 per cent to 6.99.

Deposit rates were boosted by 20bp.

And yesterday, BNZ hiked both its fixed classic and standard mortgage rates over an 18-month (classic: 7.09 per cent; standard: 7.69 per cent) and two-year period (classic: 6.99 per cent; standard: 7.59 per cent).