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Nate McKinnon/RNZ
BNZ is the third of the big five banks to announce home loan rate rises following last week’s increase in the official cash rate.
Bank of New Zealand says it will increase the cost of its floating rate home loans.
It will lift the interest rate on its Standard, Fly Buys, Rapid Repay and Mortgage One variable rate loans from 5.5% to 5.94% on June 17.
On Monday both ANZ and Kiwibank announced increases to their home loan rates.
Homeowners are being warned to brace for further rises in home loan rates as the Reserve Bank Te Pūtea Matua tries to bring down inflation.
FINANCE AND EXPEDITURE COMMITTEE
Reserve Bank governor Adrian Orr didn’t duck from tough questions at a select committee on Thursday.
Kiwibank chief economist Jarrod Kerr said in his First View report released on Monday that around half of mortgage holders were rolling on to new interest rates nearly twice what they had been paying.
“It will hurt,” Kerr said.
Independent economist Tony Alexander expected the increase in homeowners’ mortgage repayments to hit retailers as households had less in their pockets to spend.
ANZ said it would lift its floating home loan and ANZ Flexible Home Loan interest rates by 40 basis points to 5.94% pa and 6.05% respectively.
It would also increase its business floating loan and overdraft base rates by 50 basis points, with the increases taking place next month.
Kiwibank lifted its one-year fixed-rate home “special” loan rate from 4.55% to 4.85% for borrowers with debts of less than 80% of the value of their homes.
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