Mortgage rates hiked at ANZ National

ANZ National Bank has bumped up its fixed interest rates for three, four and five-year mortgages and business loans.

Competition for savings was putting upward pressure on term lending rates, the bank said in its Market Focus report today.

The three-year rate has risen from 5.99 per cent to 6.15 per cent; the four-year rate from 6.40 per cent to 6.55 per cent; and the five-year rate from 6.5 per cent to 6.75 per cent.

The rises bring its longer period lending rates generally into line with other lenders.

ANZ National said this morning the Reserve Bank of New Zealand would be mindful of how low it could take the official cash rate (The OCR is currently at 3 per cent, down from 8.25 per cent in July last year), and maintain competitiveness.

The next natural step, says the bank would would be for the Reserve Bank to signal that the OCR will stay low for an extended period.

The bank says competition for deposits from customers means interest rates are getting higher.

- NZPA