Source: Radio New Zealand
ANZ. RNZ / Marika Khabazi
ANZ, the country’s largest bank, is increasing some of its fixed home loan and term investment rates.
It is raising its home loan rates on terms between one year and five years by 10 basis points or 20 basis points.
The two-year special rate lifts from 5.09 percent to 5.29 percent and the one-year rate from 4.59 percent to 4.69 percent.
Term deposits of between 18 months and five years will lift by either 20 or 10 basis points.
It follows an update to the bank’s official cash rate forecast this week.
Chief economist Sharon Zollner said she now expected the OCR could rise three times this year, starting as soon as July.
ANZ managing director for personal banking Grant Knuckey said the changes reflected moves in wholesale interest rates.
After a fall in late March, the two-year swap rate has risen from about 2.85 percent at the start of the month to more than 3 percent.
Markets are pricing in the likelihood that interest rates will have to rise to counteract inflation due to fuel price rises driven by the Middle East conflict.
“Lower interest rates have flowed through to customers with around 82 percent of our home loans on a rate below 5 percent,” Knuckey said.
More than 44 percent of ANZ home loan customers were ahead on their repayments by six months or more.
Knuckey urged anyone with concerns to contact their bank sooner rather than later.
“People shouldn’t be nervous about talking to their bank, we’re here to support customers with the various options available to them.
“There are steps you can take to manage your home loan and things you can do to help relieve some financial pressure,” he said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
