PSIS raised its two, three and four year mortgage rates on Wednesday morning by between 15 and 30 basis points (bps). This follows a move last week by ANZ National, which raised its three, four and five year mortgage rates by up to 35 bps.

Longer term mortgage rates in New Zealand are beginning to rise as international wholesale rates rise in response to heavy government borrowing, notably by the US government. Our own government forecast last week that fiscal deficits would continue for another decade, forcing it to borrow more than NZ$50 billion.

PSIS raised its two year rate by 15 basis points to 6.10%; three year by 25 bps to 6.75%; and four year by 30 bps to 7.25%.

Compare all the latest rates on our mortgage rates page here.