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Long term interest rates rise at Westpac

Westpac last week lowered some of its short-term fixed interest rates, and today has gone the opposite way and increased longer-term rates.

Tuesday, September 22nd 2009, 6:43PM

The biggest change is to its four-year fixed home loan rate which is up is up 25 basis points to 8.20%. The next biggest increase was to its five-year rate which is up 24 points to 8.49%.

The other changes made to its rates are to the 18-month and three-year terms.

While Westpac makes no comment about why it has increased its longer-term rates, we have seen an increase in rates in the wholesale markets over the past week.

This is a comment a number of economists mentioned in their weekly economic reports yesterday.

While Westpac has increased its rates, they are not out of line with its competitors according to interest rate website www.mortgagerates.co.nz

It shows the ASB Bank and its related lenders all have higher five-year rates with ASB sitting on 8.60%.

BNZ's Global Plus rate is nine points below Westpac and the other bank rates are around the 8.30% market.

A similar pattern is shown in the three-year market too, except there are some specialist lenders with higher rates (eg Moorhouse Mortgages and No 8 Mortgages), BNZ Global Plus is higher than Westpac as are New Zealand's newest bank, SBS.

Westpac's changes today

Fixed TERM     RATE      CHANGE
6 month 5.29% pa    no change
1 year 5.49% pa    5.49% pa  
18 month   6.09% pa +0.10
2 years   6.55% pa no change
3 years   7.49% pa  +0.09
4 years   8.20% pa  +0.25
5 years     8.49% pa  +0.24

 

Comments from our readers

On 23 September 2009 at 2:07 pm cbs said:
any commentary you guys can add about the surge in the last two days on the 1 through to 5-yr swap rates and what that is likely to mean for mortgage rates in the short term? 1-yr rate currently topping 3.23% just belwo the highs of end Mar-09 of 3.40%. Any thoughts on when you think the banks will start shifting that increase on to their 6-mth and 1 year interest rates?
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The Reserve Bank has kept the OCR at 2.50% as expected, but had lowered its forecast track for the 90 day bill rate by around 60 basis points (0.6%) to a peak of 4.30% by the end of next year.

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Disclaimer: Every possible effort has been made to keep the information in the rates tables as accurate as possible, however, neither the publishers of Mortgage Rates nor anyone engaged to compile these tables accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details directly with the provider concerned.

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