ASB has become the latest bank to raise fixed-term mortgage rates, increasing all its rates from one-year to five-year terms.
ASB hiked its one-year rate by 20 basis points to 6.15%, 18 month rate by 40 basis points to 6.40%, two-year rate by 25 basis points to 6.65%, three-year rate by 5 basis points to 6.95%, four-year rate by 5 basis points to 7.35%, and five-year rate by 15 basis points to 7.75%.
Bank Direct and Sovereign, other companies in the ASB group, have also hiked all their fixed-term rates by the same amount - leaving them at the same levels - as ASB. New Zealand Home Loans also increased its fixed-term rates. See all bank mortgage rates here.
These moves have come after the Reserve Bank indicated last week that the Official Cash Rate was likely to be increased from 2.5% soon, possibly as early as September 15. Wholesale lending rates, or swap rates, have since risen by 30 to 40 basis points.
(Update adds clarification of Kiwibank's increase to the limit of its capped variable rate, as opposed to fixed rate, and swap rate chart).