The bank is increasing both its Classic home loan and standard home loan rates
Bank of New Zealand has raised the interest rate it charges on a range of its home loans.
The bank’s interest rate on its Classic home loans will change over six-month, 18-month, two-year, three-year, and four-year terms.
Read more: BNZ announces home loan rate change
BNZ’s six-month rate is increasing from 5.35% to 5.49%, its 18-month rate lifts from 5.55% to 5.59%, its two-year rate from 5.59% to 5.69%, its three-year rate from 5.69% to 5.89%, and its four-years rate from 5.89% to 5.99%, Stuff reported.
Read next: Westpac raises home loan rates
The bank said it is also increasing its standard home loan rates, for the same terms, for people who do not have sufficient equity to qualify for a Classic rate.
The Reserve Bank has continued to hike interest rates over the year in a bid to combat inflation. And while data from Stats NZ is predicted to show the inflation peak has passed, it will still have some way to go before it returns to RBNZ’s target band of 1% to 3% per year, Stuff reported.
