Westpac lifts its floating rate rise to 6.24%, raises term deposit rates as well

Westpac has become the last of the major banks to raise its variable home loan rates.

Its Choices home loan has been raised 25 bps to 6.24% and that is still significantly lower than most of their rivals.

Their Choices Everyday revolving credit rate was also raised 25 bps to 6.50%.

These new rates are effective today for new customers and July 10 for existing clients.

At the same time, Westpac has raised some selected term deposit and term PIE rates by 15 to 25 bps, matching rises by some of their rivals.

Their on-line bonus saver has also been raised to 4.35% from 4.10%.

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%
	6.24%	6.50%
Co-op Bank	6.45%	6.45%
	6.39%	6.70%
	6.15%	6.15%
TSB	6.29%	6.04%

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