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Westpac raises long term mortgage rates despite Parliamentary criticism

Posted in News

Less than a day after Parliament's Finance and Expenditure Committee said it was "surprised and concerned that longer-term mortgage rates had risen recently," Westpac announced it would raise its three and five year mortgage rates. Westpac raised its three year mortgage rate by 10 basis points (bps) to 6.95%; and its five year rate by 30 bps to 7.90%. It is the last major bank in New Zealand to make the move. Of the banks, Westpac's new five year rate is the lowest. ASB and SBS are offering 8%; BNZ and ANZ 7.99%; and Kiwibank, National Bank and TSB 7.95%. Long term mortgage rates have risen around 150 basis points since early February as long term wholesale rates have risen globally. Investors are worried about heavy government borrowing and concerns that money printing by some central banks will fire up inflation again. HSBC also raised its long term 'Premier' mortgage rates today. It raised its three year rate by 20 bps to 6.85%; its four year rate by 30 bps to 7.40%; and five year by 55 bps to 7.95%. HSBC is only a minor market player in the New Zealand market and the rates are for loans above NZ$500,000. See all the new rates on our mortgage rates page. Click here to see the rise in longer-term US Treasury bond yields (5, 10 and 30 year tabs).

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Ok, anyone want to have

Ok, anyone want to have a punt on which mob hits 9% for 5yrs first?

I will say National Bank.

I will say National Bank. They have huge exposure to the farming sector and farming is looking very sick. The next 12 months will be not nice for farmings self made problems.At least Andrew Ferrier has made a wonderful gesture and will stay on around the $3,800,000 salary and all the other overpaid executives on a $1,000,000+ will do the same. Just a bloody joke!