Major bank lifts mortgage rates for second time this month

Source: 1News

ANZ bank is hiking mortgage and term deposit rates for the second time this month.

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Citing a "significant increase" in wholesale market rates – the price banks pay to borrow money from institutional investors - it was lifting all fixed mortgage rates.

It applied to both normal and special rates for those with 20% equity.

A one-year fixed rate home loan was increasing 0.5% to 5.95%, while the special one-year rate was going up the same amount to 5.35%.

Term deposit rates were increasing for those with $10,000 or more to invest, with those locking their money away for a year getting 3.65%, up 0.5%.

"With high levels of volatility in global markets and increased inflation pressure domestically, there has been a significant increase in wholesale market rates," the bank said.

"This has been reflected in changes we’re making to our fixed home loan rates, and our term investment rates to support customers to meet their savings and investment goals.

"Interest rates will continue to be reviewed in response to international and local market conditions."

In early June, ANZ, New Zealand’s largest bank, put up both mortgage and term deposit rates.

The changes mean the bank no longer offers any advertised mortgage rate below 5%.

Last month, the Official Cash Rate was lifted to 2% by the Reserve Bank to fight inflation, which sits at 6.9%.