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Kiwibank raises fixed mortgage rates

Mortgage rates have increased at all banks.

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Mortgage rates have increased at all banks.

Kiwibank lifted its one- and two-year fixed rate mortgages.

The bank’s standard one-year rate for borrowers with less than 20% equity in their home has been reduced from 4.85% to 4.99%.

The public bank raised the cost of its two-year standard rate mortgage from 5.49% to 5.55%.

Kiwibank’s move follows ANZ, which raised mortgage rates last week.

READ MORE:
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THING

Prime Minister Jacinda Ardern said the Cabinet would cut fuel excise and road charges by 25 cents a litre, as well as halving the price of public transport for three months.

A political crisis is brewing for the government, as the cost of living rises much faster than wages or benefits, with inflation rates and mortgages rising.

ASB economist Nick Tuffley described the impact on households as a “costpocolypse”.

“Call it a crisis, a challenge, or just a ‘costpocalypse,’ but the cost of living keeps skyrocketing,” Tuffley said.

Russia’s invasion of Ukraine has driven up fuel prices and food prices have risen at the fastest rate in more than 10 years, prompting an emergency three-month fuel tax cut. fuel by the government.

“In February, food prices rose 6.8% from a year earlier, the fastest pace of food price inflation in more than a decade,” Tuffley said.

“In this context, the prices of fresh products jumped by 17%. Retail grain and dairy prices are expected to come under further upward pressure this year. »

One thing that was heading down was confidence in the housing market, he said.

The latest ASB housing confidence survey showed buyer sentiment at the lowest in the survey’s 26-year history.

Buyers were expecting further increases in home loan rates, he said.

“The view that mortgage rates would rise over the next year was unequivocal in the survey: the net balance forecasting higher interest rates was the highest in history,” Tuffley said.


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