This after a similar move from Kiwibank
BNZ has become the latest bank to move its interest rates, increasing its 18-month and two-year rates, both special and standard.
BNZ lifted its 18-month special rate from 6.95% to 7.09%, and its special two-year rate from 6.85% to 6.99%.
For those who do not qualify for that rate, the standard 18-month rate now sits at 7.69%, and the standard two-year rate 7.59%, up from 7.55% and 7.45%, respectively, Stuff reported.
BNZ’s rate moves followed that of Kiwibank’s earlier in the week. The New-Zealand owned bank raised its six-month rate by 10 basis points, its one-year special by 16bps to 7.15%, and its two-year special by 10bps to 6.99%, according to another Stuff report.
The home loan rate changes come as new bank data revealed that the margin banks make on lending has barely moved as interest rates rose.
Banks’ net interest margin, or the difference between what lenders should pay for funds and what they charge borrowers, were in the range of 2% at TSB through to 4% at Heartland Bank in the second quarter.
ASB, Heartland, and TSB posted declines of 10 basis points in their margins in the June quarter while Westpac’s increased 10 basis points.
John Kensington, KPMG partner, said banks continued to compete hard for high-quality loan business.
These banks, he said, would probably fight for potential home loan borrowers with a strong income and good equity, but be more cautious with other loans, making some borrowers who were more marginal work harder.
One mortgage broker, Glen Mcleod, said it appeared banks were hanging back at times.
“We’re about to go into the spring sale season but I’m not seeing any big spring campaigns happening,” McLeod said.
He said banks would sometimes switch on and off their appetite for deals and that a lot of uncertainty remained in the market, which he described as the “weirdest” he had ever operated in.
The Reserve Bank will make its next OCR decision next week, Stuff reported.
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