Mortgage rates hike - all the banks now up

Photo / Herald on Sunday

The Bank of New Zealand has become the last of the major banks to announce a hike in mortgage rates following the Official Cash Rate lift earlier this month.

The bank announced this morning it had lifted its total money variable rate from 5.59 per cent to 5.84 per cent, while its 18 month classic fixed rate is up 0.16 per cent to 6.95 per cent.

The changes take effect from today.

Westpac last night announced it had lifted its variable home lending interest rate by 0.20 per cent to 5.85 per cent, shortly after Kiwibank said it was lifting variable and revolving rates by 0.25 per cent to 5.90 per cent from today for new customers and July 6 for existing customers.

Westpac's fixed term interest rates remain unchanged.

The banks were widely tipped to begin hiking rates within 24 hours of the Reserve Bank's decision to lift the official cash rate for the first time in almost three years on June 10 by 25 basis points to 2.75 per cent.

However it took a week for the first of the big retail banks to break ranks and hike rates.

The bank's floating rates are:

ANZ: 5.95 per cent (simple variable)
ASB: 6 per cent
National Bank: 5.99 per cent (variable home loan)
BNZ: 5.84 per cent (total money variable rate)
Kiwibank: 5.90 per cent
Westpac: 5.85 per cent (choices everyday)

ASB lifted its floating rate by 25 basis points to six per cent last Thursday.

It raised its six month fixed lending rates by the same amount to 6.10 per cent.

ANZ and National Bank followed suit in hiking rates last Friday.

ANZ increased its simple variable mortgage rate by 26 basis points to 5.95 per cent for new customers at the weekend.

The changes take effect for existing customers on July 2.

It increased its six month fixed mortgage rate by 10 basis points to 6.10 per cent and increased its one-year rate by 10 basis points to 6.45 per cent.

National Bank announced a similar increase of 24 basis points to 5.99 per cent for its variable home loan rate.

It increased its six month fixed mortgage rate by 10 basis points to 6.10 per cent and its one year rate by 10 basis points to 6.45 per cent.