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The Red Bank announces its fixed home loan rate hikes, but delays their effective date until Friday. They set hikes of +5 to +20 bps

The Red Bank announces its fixed home loan rate hikes, but delays their effective date until Friday. They set hikes of +5 to +20 bps

The next bank has raised fixed mortgage rates.

Westpac has announced rate hikes for all its home loan rates of two years and longer.

But it says these rises won't become effective until Friday, December 2, 2016.

That will give those closing deals this week one final chance to get their lower rates.

Westpac's two years rates are rising by +5 bps, which will make their 'special' rate 4.34% on Friday.

Their three year rate is rising by +10 bps, and that rate will become 4.59%.

Their four year rate is rising by +20 bps to 5.45%.

And their 'special' five year rate will rise by +20 bps to 5.09%. By this move, their market-leading position for a five year term will be relinquished, although it will still be available until Thursday eob.

All other Westpac home loan rates remain unchanged at this review.

The Red Bank is following recent moves by their rivals and the extended notice will introduce some interesting competitive tension in the market this week.

This review may be helpful about where all the other banks stand.

See all banks' carded, or advertised, home loan rates here.

A snapshot from the key retail banks is:

below 80% LVR  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % %
4.25 4.89 4.45 5.15 5.29 5.45
ASB 4.29 4.45 4.49 4.79 5.19 5.39
4.29 4.99 4.45 4.65 5.29 5.45
Kiwibank 4.19   4.29 4.65 5.10 5.20
Westpac 4.25 4.95 4.34 4.59 5.29 5.09
             
4.39 4.45 4.45 4.79 4.99 5.19
HSBC 4.19 4.19 4.19 4.49 4.79 4.99
HSBC 4.25 4.29 4.29 4.35 4.90 4.99
4.25 4.35 4.19 4.59 4.89 4.99

In addition to the above table, BNZ has a fixed seven year rate of 5.99%.

TSB Bank offers a fixed ten year rate at 5.75%.

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1 Comments

That TSB rate of 5.75 for 10 years seems pretty attractive.

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