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Westpac hikes 6-month fixed mortage rate

Westpac is the second major bank to hike home loan rates after last week’s official cash rate (OCR) review – raising its six-month fixed-term and one year capped mortgage rates today.

Westpac’s six-month fixed-term home loan rate is now 26 basis points higher at 5.85% and the one-year capped rate has been lifted 25 basis points to 6.75%.

Reserve Bank governor Alan Bollard left the OCR unchanged at 2..5% last week.

But he gave strong indication hikes were not far off – possibly at the September 15 review – which means banks could be looking to hike long-term rates sooner rather than later.

Kiwibank was the first of the major banks to move, with a 25 basis point hike on the limit of its capped variable mortgage rate – now 6.5% - on Friday.

Westpac’s six-month fixed home loan rate now matches those offered by ASB and BNZ. National Bank and ANZ are lower on 5.99%.

At the moment, 44% of the country’s mortgages are on fixed-term rates.

More by Georgina Bond

Comments and questions

Their return on Capital already exceeds 25%
Come on banks
Rip the heart out of NZ

the great Kiwi .... RIP OFF bought to you by the letters W E S T P A C!!

Is hike the new word for raise, I thought hike refered to a massive increase.

Greedy scumbags!!

Ozzies !!

Ozzies! Lets get even on Saturday.

Short-term wholesale rates are up over 0.35% in the past 3 weeks - i.e. they haven't past on their full cost increase and we're complaining ? I expect more

Wholesale rates only represent a very small component of retail banks lending costs..Go do your homework..

These banks are nothing more than profiteering...Thank goodness Kiwibank & other locally owned banks are chipping away at their business; keeping more profits local...

Isnt it time the government moved its accounts to a local bank. Come on labour. Lets here some noise on this

Be fair raise the deposit rates too.

The first of many increases over the next 4-6 months. I anticipate a world of pain for borrowers who are unable to fix or otherwise hedge their rates

Interesting to see the Peoples Bank Kiwibank gouging of their patriotic supporters first.Now the Bank for most things Government are copying the Peoples Bank Kiwibank,what an indictment,of a captive audience.To think well meaning NZs
seem to be blinded to the need to keep all assets in house.Kiwi Bank dont seem to have the same sense of loyalty.