National Bank raises floating home loan interest rate

The National Bank has followed the lead of the nation's other major banks and increased its variable home loan interest rate by 25 basis points.

National Bank said last night its floating home loan interest rate will increase from 7.75 per cent per annum to 8.00 per cent per annum.

The new rate will take effect from today for new customers and from July 5 for existing customers.

There are no changes to the bank's fixed home loan interest rates.

Bank of New Zealand moved yesterday, also bumping up its floating mortgage rate by 25 basis points to 8.0 per cent a year.

Last week Westpac increased its floating rate to 8.1 per cent, while ASB Bank upped its floating rate to 8.0 per cent.

The hikes came after the Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 5.75 per cent on Thursday last week and signalled two more possible increases later this year.

- NZPA