Kiwibank raises mortgage rates

Kiwibank has increased many of its fixed home mortgage rates.

The state-owned bank has increased its two-, four- and five-year mortgage rates by 30 basis points to 6.69 per cent, 8.25 per cent and 8.60 per cent respectively.

It has increased its three-year rate by 29 basis points to 7.69 per cent.

The bank has introduced a new 18-month rate of 6.05 per cent.

A bank spokesman said the move reflected increases in the cost of funding. He said many banks had been increasing long-term fixed rates and the bank's floating rate at 5.79 per cent was very competitive.

Kiwibank, which usually issues news media releases when it cuts rates, did not send out one announcing the rises, effective from yesterday.

According to the Good Returns website TSB Bank increased its one-year fixed rate by 20 basis points to 5.8 per cent.

The interest.co.nz website also showed recent hikes by Kookmin, CBS Canterbury and Wairarapa Building Society.

- NZPA