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TSB raises 2 yr mortgage rate for 2nd time in a week; now 6.35%

Posted in News August 21, 2009 - 08:52am, Alex Tarrant

TSB raised its two year mortgage rate on Friday morning by 16 basis points to 6.35%. This is the second time since last Friday that TSB has raised this rate, which has gone up from 5.99% a week ago.

Both fixed mortgage and longer term deposit rates are on the rise in New Zealand as longer term rates rise globally. This is despite the Reserve Bank's promise to keep the Official Cash Rate at or below 2.5% until the latter part of 2010. The banks have been required by the Reserve Bank to raise more funds from local depositors, which has increased competition in the local market, forcing banks to put up their rates.

See and compare all the rates on our mortgage rates page.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment in the box on the right or click on the "'Register" link at the bottom of the comments. Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making these comments.

by 28_year_old | 21 Aug 09, 9:52am

Hey BH long time watcher,

Hey BH

long time watcher, first time poster

Glad I took your brother in law's advice and fixed my rentals for 5 years at 6.5% earlier this year!

Keep up the good work, great website

Regards

by Craig | 21 Aug 09, 11:29am

I hear a lot of

I hear a lot of this 'banks are required to raise more funds locally'.

Under what control measure do they do this? I haven't seen anything in the press about it. What is the level of required local funding now as opposed to what it was during the boom?

This has in my opinion the largest impact on house prices, as larger deposites and higher interest rates drop the level of prices people can afford across the board