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Kiwibank joins the movement, hikes fixed mortgage rates
October 21st, 2009Kiwibank has put on its tramping boots and joined the latest hiking movement, announcing hikes in its fixed mortgage rates this morning by between 9 and 36 basis points (bps). This follows recent moves by BNZ, ASB, Westpac, SBS and TSB. See all mortgage rates here.
The latest round of fixed mortgage rate hikes follows a jump in wholesale rates, with markets picking the Reserve Bank of New Zealand will have to raise the Official Cash Rate from its record low of 2.5% earlier than ‘the latter part of 2010′. This is partly down to an official rate hike by the Reserve Bank of Australia earlier this month and also higher than expected inflation figures for New Zealand in the September quarter.
Kiwibank raised its six month mortgage rate by 30 bps to 5.75%; one year by 36 bps to 5.95%; 18 month by 24 bps to 6.29%; two year by 26 bps to 6.95%; three year by 10 bps to 7.79%; four year by 24 bps to 8.49%; and five year by 9 bps to 8.69%.
At the same time, Kiwibank cut its revolving credit rate by 14 bps to 5.65%. The new revolving credit rate is effective immediately for new customers and from November 4 for existing customers.
Tags: ASB, BNZ, fixed mortgage rates, Interest Rates, Join the movement, Kiwibank, Mortgage rates, OCR, Official Cash Rate, RBNZ, Reserve Bank of New Zealand, Westpac
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October 21st, 2009 at 10:26 am
This is going to be an ongoing thing with the screaming set to start just as the 5yr rate passes 10% very very soon. I expect there will be a rush to list property now at a time when the peasants begin to smell the fear. The banks must now tread a path out onto a high wire over a chasm of losses. It is a question of which bank has the greatest exposure to property mortgage loans.
October 21st, 2009 at 3:15 pm
“… the cash rate would be raised to a “normal” or more neutral setting over time. The RBA has declined to spell out what a “normal” or neutral rate is, but former Governor Ian Macfarlane nominated a range of 5.25-6.25 per cent…” the Age. This should help clear up any misunderstanding regarding where the Kiwi ocr will move to. It will return to its ‘normal’ level…above the au rate…but may well go much higher for a while.
October 21st, 2009 at 8:21 pm
8% for two years government guaranteed at SCF.
Dig in….Bill is backing it.
When are these banks upping our term deposits? I’m off to SCF:)