Westpac increases longer-term rates

www.MortgageRates.co.nz

Tuesday 22nd September 2009

Westpac last week lowered some of its short-term fixed interest rates, and today has gone the opposite way and increased longer-term rates.

The biggest change is to its four-year fixed home loan rate which is up is up 25 basis points to 8.20%. The next biggest increase was to its five-year rate which is up 24 points to 8.49%.

The other changes made to its rates are to the 18-month and three-year terms.

While Westpac makes no comment about why it has increased its longer-term rates, we have seen an increase in rates in the wholesale markets over the past week.

This is a comment a number of economists mentioned in their weekly economic reports yesterday.

While Westpac has increased its rates, they are not out of line with its competitors according to interest rate website www.mortgagerates.co.nz

It shows the ASB Bank and its related lenders all have higher five-year rates with ASB sitting on 8.60%.

BNZ's Global Plus rate is nine points below Westpac and the other bank rates are around the 8.30% market.

A similar pattern is shown in the three-year market too, except there are some specialist lenders with higher rates (eg Moorhouse Mortgages and No 8 Mortgages), BNZ Global Plus is higher than Westpac as are New Zealand's newest bank, SBS.

See how Westpac's new rates compare at www.mortgagerates.co.nz

Fixed TERM	RATE	CHANGE
6 month	5.29% pa	no change
1 year	5.49% pa	5.49% pa
18 month	6.09% pa	+0.10
2 years	6.55% pa	no change
3 years	7.49% pa	+0.09
4 years	8.20% pa	+0.25
5 years	8.49% pa	+0.24

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