Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Small Increase In Variable Mortgage Rate

Media Statement from Bank of New Zealand

8 December 2003

Small Increase In Variable Mortgage Rate

The Bank of New Zealand today announced a small increase in its variable rate for residential mortgages. The increase will affect about one third of Bank of New Zealand mortgage customers. The remainder of the bank's residential customers - about 70% of customers - have fixed-rate mortgages and they will be unaffected by the increase.

The variable rate for mortgages with Bank of New Zealand will increase from 7.10% to 7.25% (increase of 0.15%). One other major lender, Westpac, raised its variable rate to 7.25% in November.

The increase in variable rates will add $2.93 to fortnightly repayments of an average-sized variable rate mortgage ($66,000 over 25 years) with Bank of New Zealand.

The change is effective from Tuesday, 9 December, for new customers, and from Tuesday, 23 December, for existing customers. Existing customers will be advised in writing of the change and the impact it will have on their repayments.

At the same time as it adjusts variable mortgage rates, Bank of New Zealand is increasing the rates it pays deposit holders with term deposits. Term deposit rates will increase by between 0.05% and 0.3%, effective immediately, for new term deposits of 90 days or more.

Bank of New Zealand spokesperson Owen Gill said: "People with term deposits with Bank of New Zealand will get the benefit of higher interest rates immediately."

Mr Gill said the increase in variable mortgage rates reflected increasing 90-day bill rates.

"Residential mortgages in New Zealand are funded from the 90-day money market, and interest rates in those markets have been increasing slowly but steadily since midway through the year. Ninety day bill rates have risen 21 basis points since late July.

"Ninety day rates are rising because those markets recognise that interest rates in New Zealand generally are rising as inflationary pressures in the domestic economy grow. In other words, the cost of borrowing is increasing across the New Zealand economy and increases in variable mortgage rates reflect that."

Bank of New Zealand's fixed rates for mortgages, which are 6.90% for one year, and ranging up to 7.75% for five years, remain unchanged. Bank of New Zealand continues its special offer of mortgages with a 3.99 % fixed rate for the first three months on a three-year 7.6% fixed rate home loan.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news