Move follows that of Kiwibank and BNZ
Westpac has hiked its mortgage rates last week – the third bank to do so after Kiwibank and BNZ.
The big bank’s standard rates for its two-year and four-year mortgages have been lifted by 10 basis points to 7.59% and 7.19%, respectively, while its 18-month and five-year standard home loan rates have been raised by 14bp to 7.69% and 6.99%, respectively.
Westpac said the latest rate changes reflect the elevated and volatile wholesale rates which the bank uses to fund its home lending, NZ Herald reported.
Westpac said it is working closely with customers to help them deal with cost-of-living pressures.
“We understand this may be a worrying time for homeowners due to [them having to] re-fix their mortgage,” a spokesperson said. “We’re proactively contacting home loan customers and people who may be facing into financial difficulty to ensure they’re well-supported and understand their options.”
Prior to Westpac’s fixed-rate move, both Kiwibank and BNZ bumped up their mortgage rates, following a strong June quarter GDP result.
The New Zealand-owned bank’s standard rates for one-year and two-year mortgages were now up to 8.15% (from 7.99) and 7.99% (7.89%) respectively, and its two-year special rate, for borrowers with more than 20 per equity, increased from 6.89% to 6.99%.
NAB-owned BNZ, meanwhile, lifted its 18-month special rate from 6.95% to 7.09%, and its special two-year rate from 6.85% to 6.99%. And for those who do not qualify for that rate, the standard 18-month rate is now at 7.69%, and the standard two-year rate at 7.59%, up from 7.55% and 7.45%, respectively, NZ Herald reported.
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