The bank reverses recent cuts to home lending rates as interest rates rise
New Zealand’s largest mortgage lender has significantly increased its home lending rates, in a move the bank said may cause stress to customers who had only seen rates drop.
The rate changes reversed recent cuts to home lending rates and are consistent with longer-term wholesale rate increases.
Read more: ANZ slashes home loans rates again
ANZ is increasing its “special” one-year fixed rate by 0.3% to 5.45% and its two-year special rate to 5.75%, also up 0.3%, Stuff reported.
The bank’s special fixed mortgage rates are for customers with at least 20% equity and an ANZ transaction account with salary direct-credited.
Meanwhile, ANZ’s special six-month rate increased by 0.35% to 5.5%, and its standard six-month rate rose by 0.35% to 6.1%. The bank’s standard one-year rate lifted by 0.3% to 6.05%, and its two-year rate rose by the same amount to 6.35%.
“With high levels of volatility in global markets and increased inflation pressure domestically, there has been a significant increase in wholesale market rates,” a bank spokesperson said. “For home loan customers who haven’t experienced rising interest rates we understand this can add some extra stress, particularly with rising inflation impacting other household costs.”
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ANZ said its team is conversing with customers to ensure they are aware of the options available to them, including options to alter the term of their loan and lower repayments.
The spokesperson said the bank would continue to review its interest rates in response to international and local market conditions, Stuff reported.
