The change will come into effect on Dec. 12
Kiwibank has become the latest bank to increase its home loan rates, adding 0.5% to both normal and special rates for those with 20% equity.
The change means a one-year fixed home loan will now lift from 5.89% to 6.39% per annum.
Kiwibank said the rate increases would continue until the bank sees a clear turn in inflation.
“[We] know the volatility in interest rates in recent years has been dramatic, but we expect interest rates to peak in the first half of 2023 as the economy cools and inflation eases,” Kiwibank said.
The new rates come into effect on Dec. 12. The hike comes after the Reserve Bank hiked the OCR to 4.25% and inflation hit 7%, 1News reported.
What are your thoughts on the latest rate hike? Let us know in the comments below.
