Kiwibank lifts its floating rate rise to 6.4%, raises its Offset Mortgage to 6.3%, raises term deposit rates as well

Kiwibank has raised its variable and revolving home loan interest rates the full +0.25% to 6.40% from 6.15%.

In addition it has raised its relatively new Offset Mortgage product to 6.30%, a hike of +35 bps from 5.95%.

The increase is effective today for new customers and will be effective July 2, 2014, for existing customers. 

At the same time it has raised a range of term deposit and savings rates. The details of these increases are in this story.

Most of the main banks except Westpac have now announced the rises in their variable home loan rates.

But very few of the smaller banks have made the shift up yet.

The Reserve Bank last week increased the OCR for the third time this year, to 3.25%.

In addition, wholesale money markets have seen short term swap rates move higher, and this shift has yet to be reflected in fixed rate mortgage market pricing.

Anecdotal indications are that these rate changes are driving a strong shift by borrowers to fixed rates, with not only the one and two year fixed rates being popular, but the three year fixed rate as well. One major - ASB - is offering an attractive five year deal at a rate that is the second best in the market. SBS offers the lowest five year fixed rate.

See all banks' carded, or advertised, home loan rates here.

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

below 80% LVR	Floating	Revolving
		Credit
	6.49%	6.60%
	6.50%	6.50%
- Total Money	6.49%
- Standard & FlyBuys	6.49%	6.49%
Kiwibank	6.40%	6.40%
	5.99%	6.25%
Co-op Bank	6.45%	6.45%
	6.39%	6.70%
	6.15%	6.15%
TSB	6.29%	6.04%

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