The country's largest bank has raised its fixed home loan rates by up to 0.26%, blaming a surge in wholesale funding costs driven by the Middle East conflict.
ANZ said its fixed home loan rates would rise across terms of six months to three years, effective Thursday.
Across the bank's special fixed home loan rates, the six-month rose 0.10% to 4.79%, the one-year climbed 0.20% to 4.99%, the 18-month increased 0.26% to 5.45%, the two-year lifted 0.20% to 5.49% and the three-year rose 0.10% to 5.59%.
Four and five-year rates were unchanged.
Special rates apply to customers with a minimum of 20% equity and an ANZ transaction account with salary direct credited. Standard rates also increased.
ANZ is not alone in the move after Westpac also lifted its own fixed rates on one to three-year terms last week, also citing renewed war in the Middle East.
Personal banking managing director Grant Knuckey said the changes reflected a broad increase in wholesale interest rates amid ongoing global uncertainty.
"Banks get their funding for lending from a variety of sources, including borrowing from global wholesale markets," he said.
"When global uncertainty pushes up those funding costs it puts upward pressure on lending interest rates including home loans.
"Wholesale rates have increased significantly in recent months amid uncertainty surrounding the conflict in the Middle East, making offshore funding more expensive.
"We aim to balance the needs of both borrowers and depositors while ensuring our rates reflect funding costs across the market."
Savers stand to benefit from higher returns, with term deposit rates rising by 0.10% to 0.30% across terms of six months to two years.
The six-month rate lifted to 3.55%, which the bank said was the highest in the market, while the 18-month and two-year rates both rose 0.30%, to 4.20% and 4.30% respectively.
Knuckey said any customers experiencing financial pressure should contact the bank as soon as possible.
"We're here to support households and businesses and discuss the options that may be available to help."
The bank said around 44% of home loan customers were at least six months ahead on their repayments, with many choosing to maintain higher payments as rates fell earlier in the easing cycle.
ANZ's move follows a similar decision by Westpac. The bank lifted its fixed rates on one to three-year terms last week, taking its one-year special rate up 0.20% to 4.99%.
Westpac NZ managing director of consumer bank and wealth Helen Ryder said "re-escalating tensions in the Middle East have once again driven up wholesale interest rates, causing bank funding costs to rise".
"Most wholesale interest rates are now over 0.30% higher than they were a month ago, so with today's changes we are passing on some of those higher costs but also absorbing some."
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