ASB hikes home loan rates amid volatility in wholesale interest rates
New Zealand's ASB bank has increased its fixed home loan interest rates, following a similar move by ANZ, due to ongoing volatility in wholesale interest rates. The bank is also raising term deposit rates to support savers amidst the current market environment.
Why it matters
Rising interest rates directly impact the cost of living and borrowing for homeowners, reflecting broader global economic uncertainty.
ASB is hiking some of its home loan rates by as much as 26 basis points as volatility in wholesale interest rates continues.
The bank said today that its popular two-year fixed mortgage rate would increase from 5.25% to 5.45%, effective immediately.
The largest increase is to its 18-month fixed term which jumps 26 basis points (bps) to 5.35%.
ASB’s one-year fixed home loan moves up 24bps to 4.99%, while its six-month offering increases by 10bps to 4.79%.
ASB is also lifting its three-year fixed home loan rate by 16bps to 5.45%.
“We’re continuing to see volatility in wholesale interest rates, which have climbed over the past month,” Adam Boyd, ASB’s executive general manager personal banking, said.
“This has a direct bearing on the rates we offer on lending and deposits, in line with what is happening in markets around the world.”
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