Kiwibank has announced rises in its mortgage rates from Monday, following on the heels of ANZ and ASB, which announced increases on Thursday.
The country's fifth-largest mortgage lender, Kiwibank said it would be lifting its variable and revolving credit home loan rates to 5.9% from 5.65%, while the offset mortgage rate will increase to 5.6% from 5.25%.
The increases take effect from Monday for new customers and from March 31 for existing customers.
Also from Monday, Kiwibank will be raising all of its term deposit rates from 30 days through to 150 days, again by 25 basis points.
The latest moves are in reaction to the Reserve Bank's decision on Thursday to lift official interest rates to 2.75% from 2.5%. It's the first rise in interest rates in New Zealand for nearly four years - and more rises are expected from the RBNZ in the next few months.
The move by Kiwibank leaves just Westpac and BNZ among the big players yet to make a change to rates.
The country's biggest mortgage lender ANZ was first out of the blocks with rate increases on Thursday, less than two hours after the RBNZ had announced its rate rise.
Fred Ohlsson, ANZ's head of both retail banking and business banking, told interest.co.nz about 240,000 home loan customers are affected, and more than 1.3 million customers with savings accounts with ANZ will benefit. Ohlsson was keen to emphasise a rising interest rate environment is good for savers.
Then on Thursday evening ASB announced that it too would be raising its rates.
Kiwibank's new floating rates compare with their main rivals as follows:
| below 80% LVR | Floating | Revolving |
| Credit | ||
 |
5.99% | 6.10% |
 |
6.00% | 6.00% |
 - Total Money |
5.74% | 5.99% |
 - Standard & FlyBuys |
5.99% | 5.99% |
| Kiwibank | 5.90% | 5.90% |
 |
5.64% | 5.75% |
| Co-op Bank | 5.70% | 5.70% |
 |
5.99% | 5.99% |
| SBS / HBS | 5.65% | 5.65% |
| TSB | 5.79% | 5.79% |
See all carded, or advertised, bank home loan rates here.
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
|
|
5.69% | 5.85% | 6.29% | 6.65% | 7.20% |
|
|
5.69% | 5.85% | 6.29% | 6.60% | 7.20% |
|
|
5.49% | 5.85% | 6.29% | 6.35% | 7.20% |
| Kiwibank | 5.49% | 5.99% | 6.40% | 6.90% | |
|
|
5.49% | 5.85% | 5.95% | 6.35% | 7.20% |
| Co-op Bank | 5.39% | 5.85% | 5.85% | 6.25% | 7.10% |
|
|
5.39% | 6.29% | 6.55% | 7.20% | |
| SBS / HBS | 5.35% | 5.60% | 5.80% | 6.10% | 6.70% |
| TSB | 5.40% | 5.85% | 5.99% | 6.40% | 7.20% |
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