National Bank raises fixed home loan rates

The National Bank has increased its fixed interest home loan rates by between 0.5 per cent and 0.15 per cent.

The changes came into effect today.

The increase pushed up the popular two year fixed rate from 7.85 per cent to 7.90 per cent. The six and 12 month rates have increased from 8.05 per cent to 8.10 per cent, the three year rate has risen from 7.6 per cent to 7.75 per cent and the four year rate is up from 7.5 per cent to 7.65 per cent.

The move comes as speculation mounts that the Reserve Bank of New Zealand could raise the official cash rate from 6.75 per cent when it meets later this month.

Last week the Bank of New Zealand relaunched its Unbeatable home loan promotion, offering to beat the fixed term interest rate on offer by any of its major competitors.

BNZ is currently offering a two year fixed rate of 7.75 per cent.

- NZPA