Westpac and BNZ follow blockade increase

Westpac and BNZ are the latest major banks to significantly raise mortgage rates and raise prices by up to 30 basis points.

Monday, September 20, 2021 6:59 AM

They follow ASB’s lead, raising fixed mortgage rates by up to 30 basis points last week.

Westpac has raised the price of one-year, eighteen-month, and two-year mortgage rates.

The one-year rate has increased by 30 basis points, Westpac’s one-year card rate is 3.45%, and the one-year special rate is 2.85%.

The bank’s 18-month interest rate will rise by 24 basis points to 3.69% and the special interest rate will be 3.09%.

The two-year rate will increase by 30 basis points to a Westpac card rate of 3.85% and a special rate of 3.25%.

As Oakland remains under the Level 4 blockade, advisors have expressed disappointment with rising interest rates.

“I’m wondering if I’m raising some of the money from these increases, even though I’m raising construction loans from the government,” said one adviser.

“It looks like a big increase ahead of the OCR in early October, especially given the recent earnings announcements.”

BNZ’s new interest rates include a 2.85% one-year “classic” loan and a 3.25% two-year classic loan.

Bank interest rates will rise significantly as lenders move ahead of the next Reserve Bank official cash rate meeting in early October. The central bank is poised to raise interest rates for the first time since 2014, despite the country’s return to Covid’s warning-level limits.

The wholesale market now has a 40% chance that the Reserve Bank will raise 50 basis points next month.

tag: ASB BNZ lending Mortgage rates Westpac

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Westpac and BNZ follow blockade increase

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