Major bank hikes 1, 2 year mortgages, drops long-term rates

Mon, Jan 23
Mortgage rates

ASB - one of NZ's big Australian-owned banks - has lifted one and two-year mortgage rates, but lowered longer-term ones.

A one-year loan with the bank has gone up 30 basis points to 6.84%, while a two-year term has lifted five basis points to 6.79%.

However, those prepared to fix for a longer period will find rates have dropped.

A three-year loan is 6.69%, down 15 basis points, while four and five-year terms are down 40 and 50 basis points respectively to 6.59% and 6.49%.

The changes come as new inflation data comes out on Wednesday. It currently sits at 7.2%.

It is widely expected that the Reserve Bank will continue to lift the Official Cash Rate at its next update in February.

It currently sits at 4.25%.