TSB, Westpac, SBS raise fixed mortgage rates; following ASB, ANZ, National Bank (Update 2)
11th Aug 09, 8:27am
TSB announced it would raise its three, four and five year mortgage rates on Wednesday morning by between 35 and 55 basis points (bps), following a string of banks and finance companies. An interesting feature of the TSB move is that it will not raise its two year fixed rate like others, leaving it at a competitive 5.99%. (Update 2 with TSB, NZF, Cairns Lockie moves.) TSB will raise its three year rate by 55 bps to 7.45%; four year by 40 bps to 7.95%; and five year by 35 bps to 8.30%. Westpac and SBS Bank have followed ASB, ANZ and National Bank in raising fixed mortgage rates this morning by between 10 and 55 bps. Yesterday, an ANZ economist piece warned that banks were likely to move quickly in raising rates as many borrowers were looking to fix their mortgages before rates rose. Only BNZ out of the big four has yet to move in the latest round of increases, while Kiwibank is still holding out. Banks have started to fight harder for term deposits in recent months following calls from the Reserve Bank to increase their share of domestic funding which would be putting upward pressure on mortgage rates. Westpac raised its 18 month rate by 10 bps to 5.99%; its two year rate by 30 bps to 6.55%; three year by 45 bps to 7.40%; four year by 55 bps to 7.95%; and five year by 35 bps to 8.25%. Also on Tuesday morning, SBS Bank raised its two year fixed mortgage rate by 20 bps to 6.55%; three year by 46 bps to 7.45%; and five year rate by 30 bps to 8.30%. SBS does not offer a four year fixed rate mortgage term. Last week SBS raised its six month and one year rates by 10 bps. NZF, Cairns Lockie and General Finance have also raised fixed mortgage rates for terms two years and above. See and compare all the rates on our mortgage rates page.