Westpac lifts mortgage rates across one- to five-year home loans

Interest rates are going up because wholesale rates had “increased significantly in recent weeks”, a Westpac leader says. Photo / Alex Burton/Portable Images

ANZ, BNZ and Kiwibank now have the cheapest one-year mortgage interest rate, at 4.49%, with ASB on 4.59%, the same rate Westpac will move to tomorrow.

Leading the two-year rate is BNZ, on 4.69%, with ANZ and Kiwibank on 4.89% and ASB on 4.95%, according to interest.co.nz.

For three-year terms, BNZ is charging 4.99%, below ANZ and ASB’s 5.19% and Kiwibank’s 5.25%.

In the five-year category, BNZ again leads with an interest rate of 5.29%, compared to ASB’s 5.69%, Kiwibank’s 5.79% and ANZ’s 5.99%.

Westpac NZ product, sustainability and marketing managing director Sarah Hearn said the rise was because wholesale rates had “increased significantly in recent weeks”, upping funding costs for lenders.

“With today’s changes we are absorbing some of those increased costs, and also passing on higher rates to our savings customers, including the best 1-year term deposit rate of the five biggest banks as of Tuesday morning.”

The bank encouraged borrowers and savers to get in touch to talk the best options for them, she said.

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.