Bank Raises One-Year Mortgage Rate Above 7%

PHOTO: Mortgage Rates. FILE

ASB, one of New Zealand’s prominent Australian-owned banks, has increased its various fixed-term mortgage rates. Notably, the one-year rate has been raised to over 7%, specifically to 7.25%.

Additionally, the six-month rate has reached 7.25%, the 18-month rate stands at 6.95%, and the two-year rate is now 6.79%. It’s important to note that these rates will be higher for individuals who don’t possess 20% equity.

propertynoise.co.nz to launch real estate industry recruitment site

Following suit, Kiwibank has also raised some of its rates. The six-month rate has climbed to 7.15%, the one-year rate is now 6.89%, while the two-year and five-year rates have increased to 6.59% and 6.29% respectively.

ASB’s move marks the first instance among major banks where the one-year rate has surpassed 7%. According to Interest.co.nz, this is the highest one-year rate offered by a major bank since 2008.

Currently, the official cash rate is at 5.5%, and the next update is scheduled for July 12.