28 June 2004
Media release – for immediate use
Fixed Home Loan Rate Increase, Term Deposit Rates Rise
Bank of New Zealand continues to lead the market in fixed term home loan rates, despite raising its one-year and two-year fixed rate to 7.25% and 7.40% respectively.*
The new rates, which take effect from today, 28 June 2004, are more competitive than National, ASB, ANZ, and Westpac which are offering 7.30% on one-year fixed rate home loans, and between 7.40% and 7.60% on two-year fixed rate home loans.
The rises reflect the increase in the cost of borrowing for the Bank.
While fixed rates have risen, depositors with Bank of New Zealand will enjoy higher rates too from today. Term deposit interest rates have increased by between 0.10% and 1.05%, with a 150-day term deposit now at 6.05% p.a.
Bank of New Zealand’s general manager for business development and strategy, Andrew Whitechurch says Bank of New Zealand offers some of the best home loan deals in the country.
“We’ve adjusted our home loan rates in line with wholesale rate increases, but Bank of New Zealand remains determined to provide market-leading rates direct to customers.”
The new fixed home loan rates that will apply from today, Monday 28 June (with old rates in brackets) are: *
6-month: 7.10% (6.85%)
1-year: 7.25% (6.90%)
2-year: 7.40% (7.15%)
3-year: 7.65% (7.50%)
4-year: 7.80% (7.65%)
5-year: 7.85% (7.70%)
7-year: 7.95% (7.80%)
* Excludes rates for GlobalPlus home loans offered by Bank of New Zealand. GlobalPlus two-year rate now 7.60%.