Major bank hikes some fixed-term mortgage rates

BNZ has lifted some of its fixed-term mortgage rates – two of them for the second time in two weeks.

The bank has lifted three standard rates by 10 basis points – the 18-month term to 4.95%, its two-year term to 5.19% and its three-year term to 5.39%.

Those with less than 20% equity in their property will pay a low equity interest rate premium.

On April 23, the bank lifted rates, including the 18-month term by six basis points and the two-year term by 20 basis points.

The changing interest rates come as banks deal with moving wholesale interest rates, which drives what it costs banks to borrow the money they lend. It has seen all banks lift rates in recent weeks.

The oil crisis created by the war in the Middle East has driven up prices, raising concern that the Reserve Bank and other central banks might have to increase interest rates to slow inflation.

The Reserve Bank held the OCR steady at 2.25% last month.

The next OCR decision comes on May 27, one day before the Budget.

BNZ yesterday posted a $494 million half-year statutory net profit for the six months to March 31.

The results were down $301 million, or 37.9%, on the previous year.