New Zealand's biggest bank has hiked its mortgage rates again, after the latest Official Cash Rate (OCR) rise was announced last week.
ANZ's announcement comes after the Reserve Bank hiked the OCR by another 75 basis points last Wednesday. It now sits at 4.25%.
"ANZ will increase fixed home loan rates by 0.55% pa. For four and five-year terms the rate will increase by 0.35% pa," the bank said in a statement today.
That means the current one-year fixed rate special of 5.99% pa will increase to 6.54% pa and the two-year fixed rate special of 6.19% pa will also increase to 6.54% pa.
"People shouldn't be nervous about talking to their bank, we're here to support customers with the various options available to them," ANZ managing director for personal banking Ben Kelleher said.
"There are steps you can take to manage your home loan and things you can do to help relieve some financial pressure."
ANZ's floating, flexible home loan interest rates and blueprint to build (the discounted floating rate for people building their own home) will also increase by 0.65% pa.
However, there is also some good news for people with savings in term deposits.
"ANZ will increase the interest rate on Serious Saver by 0.75% pa. Term deposit rates will also increase; with the key 12-month term increasing 0.60% to 5.10% pa," the bank announced.
Effective dates below:
Mortgage saving tips
Mortgagelab owner Rupert Gough shared some top tips on how Kiwis can save money amid rising interest rates on Breakfast this morning.
Gough said technically, if the bank has given someone a mortgage in the past year they should still be able to afford it if they cut back on "absolutely everything".
"There are people that have unexpected costs come up, people got into that market but if you can get through this next year or so then you know interest rates will come down, price of property will go up again, you've got to think long term, holding is always a good option in terms of property ownership."
Gough said there are a few measures Kiwis can take to lessen their financial stresses at the moment:
- Review what you're spending day to day, including paid subscription services like Netflix
- If you can't stop the money going out, you need to increase the money coming in
- Looking for a second stream of income or seeking a job with better pay
- Writing down how much money you think you've spent in a period of time, then printing out bank statements and comparing the numbers.