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


Memo to home loan customers: fix, fix, fix

20 September 2004

Memo to home loan customers: fix, fix, fix

There are some things you just have to do around the house; the washing; the dishes, and the vacuuming. Here’s one more thing to add to the list; fix your home loan.

Bank of New Zealand has announced an increase in its variable home loan rate, from 8. 25 % to 8.50 %, but has held its 12-month and two-year fixed rates at its already low levels, in the face of increases by most competitors.

Andrew Whitechurch, Bank of New Zealand’s general manager of business development and strategy, says the Reserve Bank has not finished increasing rates and home loan customers should fix their home loan rate – and fix quick.

“We’re predicting further official cash rate rises by the Reserve Bank this year, with interest rates potentially getting as high as 9%. We advise customers to fix home loans in the current environment and are doing all that we can to hold the popular one and two-year terms as low as possible for customers.

“Our two-year rate fixed rate home loan at 7.40% is the lowest of all the major lenders, and with further increases in the floating rate expected in the short to medium term, fixing for two-years is a safe bet,” says Mr Whitechurch.

Bank of New Zealand’s increase in its variable home loan rate reflects a rise in the cost of borrowing for the bank. On Thursday 9 September, the Reserve Bank raised the official cash rate from 6.00 % to 6.25 %. Westpac were the first to raise their variable interest rate to 8.60%. ASB and National Bank both moved to 8.50% respectively.

Bank of New Zealand also announced an increase in its six month fixed interest rate, from 7.35% to 7.50% but remains the lowest or equal lowest among major banks across most fixed rate terms.


© 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