Two of NZ's biggest banks raise variable mortgage rates within a fortnight of each other
BNZ and ASB are both increasing variable home loan rates within weeks of each other, as New Zealand's banks continue repricing following the Reserve Bank's official cash rate hike to 2.5%.
Two banks, two timelines
ASB's changes land first: its housing variable rate rises from 5.79% to 6.04% and its Orbit variable rate from 5.89% to 6.14%, a 25 basis point increase across the board, effective 14 July for new customers and 15 July for existing borrowers.
BNZ follows on 29 July, lifting its standard variable rate loans to 6.09%, while TotalMoney Variable, Mortgage One, and Rapid Repay all move to 6.19% for new and existing customers.
Fixed rates and savings tell a different story
Not every rate is heading up. ASB has trimmed some long-term fixed home loan terms by up to 30 basis points, giving borrowers locking in longer terms a modest offset against the variable rate rise.
ASB's executive general manager personal banking, Adam Boyd, acknowledged the pressure this creates for households.
"Interest rate increases can be difficult for many households," Boyd said, encouraging "any customers feeling any pressure with their mortgages to get in touch with us early to work through options."
Savers get some relief too — ASB is lifting Savings On Call by 15 basis points to 0.25% and Savings Plus by 20 basis points to 1.80%, with Boyd noting the bank recognises "many customers will be working hard to build their savings."
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
