Home loan rates start moving up sharply

Friday 7th August 2009

Home loan rates have suddenly started rising, and quite sharply, after many weeks with no changes.

The first change came yesterday when New Zealand's newest bank, SBS, hiked its six month and one year fixed rates 10 basis points each to 5.60% and 5.70%.

This morning ASB, Bank Direct and Sovereign have gone even further. They have increased all rates with a duration of 18 months or more and made significant increases.

The biggest have been to three-year rates which are up 50 basis points each, four years are up 40 points and two and five year terms are up 30 points each.

Mortgagerates.co.nz publisher Philip Macalister analyses the moves and looks at swap rates in his latest Blog, SBS raises rates: Will others follow?

To see how the interest rate market has changed in the past year have a look at this graph as it gives a clear picture of how the market has moved.

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