Kiwibank has joined the ranks of major banks to pass on the Reserve Bank's higher OCR rate to home owners.The locally-owned bank today said it would lift floating mortgage rates by 0.25% to 5.9%, effective from tomorrow for new customers and July 6 for
Kiwibank has joined the ranks of major banks to pass on the Reserve Bank’s higher OCR rate to home owners.
The locally-owned bank today said it would lift floating mortgage rates by 0.25% to 5.9%, effective from tomorrow for new customers and July 6 for existing Kiwibankers.
Tomorrow, the bank’s six-month fixed mortgage rate will also rise from 5.99% to 6.10%, with one-year rates rising from 6.35% p.a. to 6.45%.
BNZ is now the only major bank to have not adjusted its rates since the Reserve Bank raised the OCR by 25 basis points to 2.75% just over a week ago – the first rise in the OCR since July 2007.
ASB was the first of the major banks to match that last week, adding 0.25% to its floating mortgage and most savings account rates – now sitting at 6% – ending the week-long stand off between the major banks.
ASB also made changes to its six and 12-month fixed lending rates and said the rise took into account the increase in overall funding costs for the bank.
ANZ and National Bank followed suit on Friday, raising floating mortgage rates by 0.25% to 5.95% for ANZ and 5.99% for National. The new rates took effect on the weekend for new customers and from July 2 for existing customers.
Increases have also been made to the six-month and one-year rates
Westpac lifted its floating home-loan rate ahead of the OCR increase and, at 6.29%, has the most expensive variable home loan rate in the market.
Kiwibank has also revealed a new capped variable mortgage rate that caps the standard floating rate at 6.50% for 12 months – for a $250 fee.
