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ANZ raises mortgage rates


ANZ is raising the interest rate on two of its shorter-term home loan offers.

The bank raises its one-year standard rate by 16 basis points to 5.75%.

Its special rate, for borrowers with more than 20% down payment, goes up in the same margin to 5.15%.

Its 18-month rates are also increasing, but only by six basis points.

The standard rate increases to 5.95% and the 18-month special to 5.35%.

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The bank said the increase was due to movements in the wholesale cost of funding.

Interest rates have risen dramatically over the past year as central banks around the world struggle to rein in inflation.

ANZ says the move is due to rising wholesale funding costs.

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ANZ says the move is due to rising wholesale funding costs.

New Zealand’s official exchange rate (OCR) is expected to peak at around 4%, down from 3% currently.

But some forecasters say the interest rates paid by borrowers may not have to rise much further, as much of that increase has already been priced in.

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