Key Facts:

– ANZ, New Zealand’s largest bank, has raised its home loan rates by as much as 26 basis points.
– The new rates are effective immediately.
– The one-year fixed rate will be 7.99%, up 14 basis points, while the special rate will be 7.39%.
– The steepest increase will be for six-month terms with a 26 basis point rise to 7.95%.
– ANZ’s changes come alongside lifts to some term deposit rates, with a one-year deposit now offering the most attractive rate of 6.1% per annum.

Article Summary:

ANZ, New Zealand’s largest bank, has raised its home loan rates ahead of the Reserve Bank’s OCR (Official Cash Rate) review next month. The new rates, effective immediately, include a 14 basis point increase in the one-year fixed rate to 7.99% and a 26 basis point increase in the six-month term rate to 7.95%. ANZ’s move comes alongside increases in some term deposit rates as well. The bank stated that its interest rates will continue to be reviewed based on international and local market conditions. Other banks, such as BNZ and Westpac, are also adjusting their rates.

Experts in the mortgage market have responded by saying that although the increase in rates is noticeable, it is not as significant as previous increases. Mortgage advisor Gareth Veale advises borrowers to shop around and negotiate with their bank or use a mortgage broker. First Home Buyers Club spokesperson Lesley Harris expressed concern about the tough times for first home buyers and called for banks to offer more specials for this group. She emphasized the need for buyers to do their homework and called the housing market a broader New Zealand problem affecting people’s retirement and future generations.

Source Link: To read the full article, click here.