Kiwibank latest to hike mortgage rates from today, some terms raised by 20 basis points
Kiwibank has joined other major banks in lifting their mortgage rates by as much as 20 basis points.
The bank’s one-year special fixed home loan rate will increase six basis points (bps) to 4.65%, effective today.
Its two-year fixed special home loan rate will jump 20bps from 5.09% to 5.29%.
Kiwibank’s special three, four and five-year home loan rates increase by 10bps.
Special home loan rates require a minimum 20% equity and are also available for First Home Loan customers.
Kiwibank’s term deposit rates from six months to five years will also move up by as much as 15bps, the largest being its two-year term which jumps from 4.10% to 4.25%.
Economists are at odds as to when the Reserve Bank (RBNZ) will hike the Official Cash Rate (OCR).
ANZ and economic consultancy Infometrics are both forecasting three OCR hikes this year, starting in July.
But Infometrics went a step further, with chief forecaster Gareth Kiernan saying “increases starting in May cannot be ruled out”.
Meanwhile, Kiwibank economists have warned that raising interest rates too soon could be “reckless” and “risks a repeat of past mistakes, potentially inducing a recession”.
Instead, they maintain a “wait and see” approach through most of this year.
Last week, Westpac increased some of its home loan rates by up to 14bps.
Its special one-year term increased 10bps to 4.69% and its 18-month term rose 14bps to 4.99%.
Earlier, ANZ hiked its one-year, 18-month and three to five-year special fixed home loan by 10bps.
Grant Knuckey, ANZ NZ’s managing director for personal banking, said the adjustments reflected recent moves in wholesale interest rates.
“Since the fixed rate changes we made in March, wholesale rates have continued to rise across all terms.”