BNZ – one of New Zealand’s major Australia-owned banks – has raised some of its mortgage rates.
The bank has lifted is classic fixed six-month interest rate from 7.25% to 7.39%, while its four and five-year rates have gone up from 6.29% to 6.49%.
The classic rate is available to those with 20% equity in the property.
Its standard six-month rate has gone up from 7.85% to 7.99%, while its standard four and five-year rates are up from 6.89% to 7.09%.
Infometrics chief executive Brad Olsen said BNZ’s decision to hike rates is “out of step” with other banks.
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“Most major banks have kept six-month special mortgage rates at around 7.19-7.25%, which puts the BNZ decision to raise their 6-month rate to 7.39% out of step with other banks, without any recent underlying changes to fundamentals for borrowing costs,” Olsen told 1News.
“The OCR was unchanged in July when the Reserve Bank last reviewed its rate, and wholesale swap rates and the 90-day rate are broadly unchanged in the last week or two.
“There has been a bit of pressure, and volatility, around wholesale funding rates over the last month or so, but nothing recently to firmly explain the lift in borrowing costs.”
On July 12 the Reserve Bank ended 12 consecutive hikes to the official cash rate by holding it at 5.50%. It signalled the OCR may have hit its peak.
Last week, Westpac increased the interest rate on three short-term mortgage rates.
Source: 1news.co.nz