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Another bank raises most home lending rates including its floating rates, following similar moves of some majors

Another bank raises most home lending rates including its floating rates, following similar moves of some majors

The Co-operative Bank has raised all its home loan rates, except its 5 year fixed rate.

And that includes its floating rate and its revolving credit rate.

These have been hikes by +10 bps to 5.55%.

The increases to fixed rates range from +6 bps to 4.45% for one year fixed, and to 5.45% for 4 years fixed, to +20 bps to 4.75% for two years fixed.

These are the rates for their "owner occupier" lending which applies where the LVR is lower than 80%, and for Welcome Home Loans.

Similar changes apply to their Standard rates, which apply for greater than 80% LVR loans and investment property lending. Standard rates are typically +50 bps higher.

These increases are effective on Wednesday, January 18, 2017.

Today's changes don't change who has the leading carded rates for mortgage borrowers. HSBC Premier still leads for a one year term, SBS Bank now has the leading rates for 2 years, and TSB Bank has the market-leading offers for 3 and 5 year terms.

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 4.99 4.59 5.29 5.45 5.60
ASB 4.49 4.65 4.79 5.09 5.49 5.69
4.49 5.05 4.79 5.09 5.69 5.79
Kiwibank 4.35   4.54 4.95 5.45 5.55
Westpac 4.49 5.05 4.79 5.09 5.69 5.49
             
4.45 4.60 4.75 5.05 5.45 5.55
HSBC 4.19 4.29 4.39 4.69 5.09 5.29
HSBC 4.29 4.45 4.39 4.75 5.29 5.45
4.25 4.45 4.49 4.69 5.10 5.29

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

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2 Comments

are they also raising deposit rates, hope so about time savers felt some love from the banks
How long before 2 years tick over to 5% for all banks,

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While increases are always going to create problems for some , the current level of increases still keep rates the lowest in my lifetime

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