TSB raises 2 yr mortgage rate for 2nd time in a week; now 6.35%

TSB raised its two year mortgage rate on Friday morning by 16 basis points to 6.35%. This is the second time since last Friday that TSB has raised this rate, which has gone up from 5.99% a week ago. Both fixed mortgage and longer term deposit rates are on the rise in New Zealand as longer term rates rise globally. This is despite the Reserve Bank's promise to keep the Official Cash Rate at or below 2.5% until the latter part of 2010. The banks have been required by the Reserve Bank to raise more funds from local depositors, which has increased competition in the local market, forcing banks to put up their rates. See and compare all the rates on our mortgage rates page.