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The state-owned lender follows the pack with a +25 bps raise to 6.65%, signals term deposit rates are rising too

The state-owned lender follows the pack with a +25 bps raise to 6.65%, signals term deposit rates are rising too

Kiwibank today announced its new floating mortgage rate.

It will be 6.65%, up +25 bps from 6.40%.

This change is effective Wednesday, July 30 for new clients, and August 12, 2014 for existing customers.

They are the last major mortgage lender to announce their response to last week's OCR 25 bps hike.

Among those five majors, Westpac retains the lowest floating rate even though their increase was +35 bps as announced earlier today.

At the same time, Kiwibank signaled it will be increasing term deposit rates next week "for a number of terms".

They already have a 200 day 'special' at 4.40% and starting Monday they will shift their six month rate up +40 bps to 4.50%. It seems likely the 200 day 'special' will be withdrawn then.

At the same time, the Co-operative Bank also announced its new floating rate. See separate story here.

See all carded, or advertised, bank home loan rates here.

You can also see all bank non-interest rate home loan incentives here.

Kiwibank's new floating home loan rates compare with their main rivals this morning as follows:

below 80% LVR Floating Revolving
    Credit
6.74% 6.85%
ASB 6.75% 6.75%
 - Total Money 6.74%  
 - Standard & FlyBuys 6.74% 6.74%
Kiwibank 6.65% 6.65%
Westpac 6.59% 6.75%
     
Co-op Bank 6.70% 6.70%
HSBC 6.59% 6.80%
6.30% 6.35%
6.49% 6.49%

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2 Comments

Are Kiwibank also increasing their savings rates by 0.25%?  Notice Saver to lift 0.25%, Online Call to lift by 0.25%, Frontrunner to lift by 0.25%?  If not, why not?

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They have to maintain good profit margins so it's wise that they don't increase deposit rates by as much as borrowing rates and thus widen spreads. Good on Kiwibank for being responsible to their shareholders.

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