Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
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.
This article is tagged with the following keywords. Find out more about MyNBR Tags