15 June 2004
Variable home loan rate increase
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 .25% to 8.0%.
The increase reflects the increase in the cost of borrowing for the Bank. The Reserve Bank raised the official cash rate to 5.75% last Thursday, an increase of .25%. Since then, other major lenders including Westpac 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.
Fixed term home loan rates remain unchanged.
Bank of New Zealand’s general manager for business development and strategy, Andrew Whitechurch, says despite the rate increase, Bank of New Zealand’s floating rate remains competitive against other major lenders.
“We’ve had to adjust our home loan rates in line with wholesale rate increases, but we are determined to provide market-leading rates directly to customers with no hidden costs.”
The new rate applies from today, Tuesday 15 June 2004.