ASB raises mortgage rates

ASB has become the latest bank to raise fixed-term mortgage rates, increasing all its rates from one-year to five-year terms.

ASB hiked its one-year rate by 20 basis points to 6.15 per cent, 18 month rate by 40 basis points to 6.40 per cent, two-year rate by 25 basis points to 6.65 per cent, three-year rate by 5 basis points to 6.95 per cent, four-year rate by 5 basis points to 7.35 per cent, and five-year rate by 15 basis points to 7.75 per cent.

Bank Direct and Sovereign, other companies in the ASB group, have also hiked all their fixed-term rates by the same amount - leaving them at the same levels - as ASB.

New Zealand Home Loans also increased its fixed-term rates.

The ASB hikes come after increases to some fixed-term rates from Kiwibank and Westpac since the Reserve Bank indicated last week that the Official Cash Rate was likely to be increased from 2.5 per cent soon, possibly as early as September 15.

Published courtesy of INTEREST.CO.NZ

Source: NZ Herald Online

Posted: 4 Aug 2011

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