TSB has this morning raised its two and three year mortgage rates by 30 and 20 basis points, respectively. The new rates are 6.65% for two years and 7.65% for three years. TSB is offering 8.2% for four years and 8.5% for five years. This follows a move last week by Kiwibank, which raised its longer term fixed mortgage rates by around 30 bps. Kiwibank raised its two year rate to 6.69%; three year to 7.69%; four year to 8.25%; and five year to 8.6%. See and compare all mortgage rates here. Banks are lifting their longer term mortgage rates as wholesale rates rise, partly due to increased demand from homebuyers looking to lock in rates and partly because markets are expecting the Reserve Bank of New Zealand will have to start raising the Official Cash Rate from its current record low of 2.5% early next year to cool a recovering economy.
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