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
- Kiwi migration at lowest level in 30 years
- Spark-Netflix deal could backfire: lawyer
- Minter Ellison invests $2m in artificial intelligence technology to replace lawyers
- Veritas shares rise on profitable half-year, debt plan before bank
- Employers back PM's comments on drugs stopping young people from getting jobs
Most listened to
- AWF Madison chief executive Simon Bennett says young Kiwis not being able to pass a drug test is “reasonably significant.”
- Scales boss Andy Bowland explains why the board lifted annual guidance again
- Join OMF's Phillip Lindberg and NBR's Andrew Patterson for Currency Talk
- Otago University Professor Andrew Geddis on how election campaigns will change
- Hamilton Hindin Greene's Jeremy Sullivan on why Spark did a deal with Netflix