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


Variable Home Loan Rate Increase

Media statement

5 February 2004

Variable Home Loan Rate Increase, Term Deposit Rates Rise

Bank of New Zealand has announced an increase in the interest rate on its variable rate home loans following similar increases by other major lenders. Bank of New Zealand’s variable rate will rise by 0.25%, to 7.50%, from Monday, 9 February.

The increase reflects the increase in the cost of borrowing for the bank. Ninety-day bill rates have risen more than 20 points since late last week when the Reserve Bank raised the official cash rate. Since then, other major lenders, including Westpac, ANZ, and ASB, have raised their variable home loan rates. Westpac moved to increase its variable rate within hours of the official cash rate rise last week.

Interest rates for Bank of New Zealand’s fixed rate home loans remain unchanged.

While home loan variable rates will increase on Monday, depositors with Bank of New Zealand will enjoy higher rates too from Monday. Term deposit Interest rates will increase between 0.10% and 0.50% from Monday.

Despite the increase in the home loan variable rates announced today, Bank of New Zealand continues to offer home loan packages that give customers discounted interest rates. This week Bank of New Zealand has introduced the Ultimate Home Loan package in which, subject to conditions, Bank of New Zealand is discounting its variable rate by 0.25% and waiving establishment fees.

Under Ultimate Home Loan, customers must have a minimum home loan of $150,000, and they must take a minimum of 25% of the total value of the loan at the variable rate and the remainder at a fixed rate. In exchange, the variable rate portion of the loan will be discounted 0.25% (to 7.25% from Monday).

Bank of New Zealand spokesperson Owen Gill said: “While variable rates are rising, customers can still buy attractive packages like Ultimate Home Loan. There is good news too on home loan interest rates.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>


InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>


Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>


Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>


ScoopPro: Helping PR Professionals Get More Out Of Scoop has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>