24 September 2004
Bank of New Zealand announces increase in one year fixed rates
Bank of New Zealand has announced an increase in its one-year fixed home loan rate, but has held its two-year fixed rate at its already low level, in the face of increases by most competitors.
The one-year rate has increased from 7.25 % to 7.50 %. Bank of New Zealand has also increased its one year fixed rate on its Global Plus home loan from 7.50 to 7.70%.
Andrew Whitechurch, Bank of New Zealand’s general manager of business development and strategy, says despite the rate increase, Bank of New Zealand still offers some of the best home loan deals in the country.
“Two years is still the term of preference for most customers and our two-year rate fixed rate home loan at 7.40% is the lowest of all the major lenders. With further increases in the floating rate expected in the short to medium term, fixing for two-years is still a safe bet,” says Mr Whitechurch.
Bank of New Zealand’s increase in its one year home loan rate reflects a rise in the cost of borrowing for the bank, following the Reserve Bank raising the official cash rate from 6.00 % to 6.25 % on 9 September.