NZ's biggest bank raises most mortgage rates

New Zealand's largest bank has increased most of its fixed-term rates, citing rising wholesale borrowing costs — the third major lender to do so this week.

ANZ announced it would raise its 18-month to five-year fixed home loan rates by 20 basis points (0.20%), with the one-year rate rising by 10 basis points, effective from tomorrow.

The bank's six-month fixed rate special remained unchanged.

The one-year special rate would rise to 4.59%, while the two-year special would increase to 5.09%. Standard rates would also rise, with the one-year rate moving to 5.19% and the two-year rate to 5.69%.

It comes after Westpac raised longer-term interest rates yesterday and BNZ announced it would raise some fixed home loan rates this morning.

ANZ managing director for personal banking Grant Knuckey said the increases were a response to rises in wholesale interest rates.

"Since the fixed rate changes we made in February, wholesale rates have continued to rise across all terms," he said.

Knuckey said home loan customers were still seeing the benefits of earlier cuts to fixed interest rates in the easing cycle.

"Seventy-eight per cent of ANZ's fixed home loans are now on rates below 5%, a significant shift from the end of 2024 when fewer than 10% of loans were on rates below 5%."

The bank also announced hikes to some term deposit rates, ranging from 0.15% to 0.40% on terms of one year or longer.

"Our three-year term investment rate is now 4.40% – an 18-month high," the bank said.

Short-term deposit rates for periods of 270 days or less remained unchanged.

Wholesale interest rates have risen in recent weeks amid global uncertainty linked to the conflict in the Middle East alongside surging oil prices.

Westpac also announced yesterday that it would increase its fixed home loan and term deposit rates on terms of one year or longer.

Managing director of product, sustainability and marketing Sarah Hearn said "longer-term wholesale rates have increased significantly in recent weeks, driving up funding costs for lenders".

More on this topic

Big bank hikes multiple home loan rates, citing increased costs

There was relief for savers, however, as Westpac boasted its one-year term deposit rate was now the best among the five biggest banks.

Business

Tuesday 11:57am

3:14

Interest rates are rising, so what's the best strategy now?

Banks are moving interest rates higher, but the right term to pick depends a lot on how you think the economy will fare through the rest of this year.

Business

4:10pm

Second bank this week hikes mortgage rates

The changes followed a "significant" jump in wholesale rates amid global uncertainty.

Business

8:42am

1:31

"With today's changes we are absorbing some of those increased costs, and also passing on higher rates to our savings customers," she said.

"In an environment of rising interest rates, it's a good time to set financial goals and plan how to achieve them," she said, encouraging both borrowers and savers to get in touch.