Major bank raises mortgage rates for the second time this month
ANZ Bank is raising mortgage and term deposit rates for the second time this month.
Citing a “significant increase” in wholesale market rates – the price banks pay to borrow money from institutional investors – she raised all fixed mortgage rates.
It applied to the normal and special rates for those who held 20% equity.
A one-year fixed rate home loan increased by 0.5% to 5.95%, while the one-year special rate increased by the same amount to 5.35%.
Term deposit rates rose for those with $10,000 or more to invest, with those who locked their money in for a year getting 3.65%, up 0.5%.
“With high levels of volatility in global markets and heightened inflationary pressure domestically, there has been a significant increase in wholesale market rates,” the bank said.
“This has been reflected in the changes we are making to our fixed mortgage rates and our term investment rates to help clients meet their savings and investment goals.
“Interest rates will continue to be revised in response to international and local market conditions.”
In early June, ANZ, New Zealand’s largest bank, raised mortgage and term deposit rates.
The changes mean that the bank no longer offers advertised mortgage rates below 5%.
Last month, the official exchange rate was raised to 2% by the Reserve Bank to combat inflation, which stands at 6.9%.