Move follows a home loan rate increase from ANZ last week
The Bank of New Zealand has announced that it is increasing the interest rate it charges on its one-year fixed-term home loans.
Read more: BNZ makes prediction over NZ recession
BNZ’s special “Classic” rate, available only to buyers who have at least 20% equity in a property, is increasing from 4.95% to 5.15%.
The rate change means a BNZ customer with a $500,000 mortgage over 25 years would see their payments increase from $2,908 a month to $2,967, Stuff reported.
Read next: Has New Zealand fallen into a recession?
BNZ’s standard rate is also rising by 20 basis points to 5.75%.
Interest rates have risen significantly over the past year, although they have shifted up and down in recent months.
The Reserve Bank is tipped to raise the OCR to a peak of 4%, from the current 3%, as it attempts to curb surging inflation, Stuff reported.
Read next: ANZ raises home loan rates
