Floating rates up, fixed down

All the major banks have now increased their floating mortgage rates 25 basis points to 7.50% following the Reserve Bank’s surprise Official Cash Rate rise nearly a fortnight ago.

During the week the majority of the non-bank lenders have increased their floating rates too, however they are all below the main banks. The lowest rate on offer is 6.80% from Equitable and Pacific Home Loans.

While the main banks have their floating rates at 7.50%, the second tier banks have their floating rates between 6.95% for Kiwibank to 7.45% for HSBC.

While fixed rates have risen across the board there have been some reductions in the fixed rate area. For a full list of changes go the Rates Page.

BNZ economist Tony Alexander says fixed rates are now 1% above their record lows of July last year while fixed rates are up 0.4% with another 0.5% to go this year.

ANZ economist David Drage says the best deal for borrowers is around the one and two year rates.

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