Public Trust has raised its two, three, four and five year mortgage rates, and PSIS has raised its three and four year rates following moves by the banks last week. Banks have raised their longer term mortgage rates across the board in the last two weeks as longer term rates globally have risen because of heavy borrowing by governments. Also, the Reserve Bank's move to force banks to raise more money locally and for longer terms has pushed up term deposit rates and therefore funding costs, despite the Official Cash Rate remaining flat at a record low of 2.5%. Public Trust raised its two year rate by 25 basis points (bps) to 6.5%; its three year rate by 55 bps to 7.4%; and four year by 45 bps to 7.95%. It raised its 5 year rate by 40 bps to 8.3%. PSIS raised its three year rate by 40 bps to 7.35%; and four year rate by 45 bps to 7.85%. PSIS does not offer a five year rate. See and compare all mortgage rates here.
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