Kiwibank and BNZ follow other major banks in raising mortgage rates

Kiwibank and BNZ raised mortgage rates.

Kiwibank and BNZ raised mortgage rates.

Kiwibank and Bank of New Zealand raised mortgage rates, following mortgage rate hikes announced last week by ANZ, ASB and Westpac.

Kiwibank raised its variable rate loans from 4.25% to 4.5% immediately for new loans, and it raised its revolving home loan rate from 4.3% to 4.55%.

The new rates will not apply to existing loans until March 14.

BNZ said it would raise its standard variable rate home loans, Rapid Repay and Total Money from 4.95% to 5.15% on March 17.

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“> 0.75% to 1%.

The Reserve Bank has also signaled that the OCR may need to increase to around 3.4% by the end of 2024 to bring down inflation, it previously expected the OCR to peak at around 2, 6%.

reserve bank

Reserve Bank Governor Adrian Orr discusses the implications for New Zealand of the Ukraine crisis on February 23.

State-owned Kiwibank’s variable-rate loans remain lower even after the move than those of its Australian rivals.

Kiwibank has also raised rates on some of its fixed rate loans.

So far, Australia’s major banks have delayed raising their fixed-rate lending rates, although the Co-operative Bank, owned by its depositors, has also raised its variable and fixed-rate home lending rates.

Rising mortgage rates have led banks to forecast lower house prices.

Reserve Bank Governor Adrian Orr acknowledged that the housing market was already softening, and the committee said higher interest rates were “consistent with housing prices ‘real estate become more sustainable’.

BNZ is increasing the interest it charges on variable rate mortgages.

Nate McKinnon/RNZ

BNZ is increasing the interest it charges on variable rate mortgages.

Orr said last week that there would be “small pockets” of owners, particularly those who had taken on debt recently, who might be in a position where they needed to manage negative equity – owing more than the value of their properties – “for one day”.

In addition to dealing with higher mortgage rates and high inflation, households are also dealing with high oil prices.

Kiwibank also announced that it was increasing certain deposit rates.

It raised the interest it pays on its 90-day notice savings accounts to 1.75% and the interest on its 32-day notice savings accounts went from 0.7% to 0.8 %.

The interest paid on his online calling account has increased from 0.5% to 0.6%.

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