Floating rates rise while fixed rates tumble

The OCR was increased by 25 basis points to 3.00% at its last review and since last Thursday 10 lenders (ASB, Sovereign, NZ Home Loans, Silver Fern Mortgages, Credit Union Baywide, NZF, TSB, ANZ, Westpac and Kiwibank) have increased their floating rates by 25 basis points (bps) with most making the same increase to six-month rates.

The floating rate median for the major banks is now 6.24% and the six-month median is 6.20%.

These lenders also dropped two-year rates from between 10 and 35bps and three-year rates by between five to 65bps. The median rates for these terms for the major banks are now 6.92% and 7.23% respectively.

Four of those same lenders cut five-year rates as well, most by five or 10 basis points and Silver Fern Mortgages by a substantial 80bps and six of those lenders cut four year rates, most by 10bps.