BNZ Raises Fixed Rates Amid Inflation Fears

BNZ has made significant changes to its mortgage rates ahead of the spring lending season. The bank's six-month and one-year fixed rates have both risen, effective from September 22nd. The new six-month rate is now 4.89%, while the one-year term sits at 5.19%. In contrast, BNZ has trimmed its two-year rate to 5.35%, but increased its three, four, and five-year rates to 5.59%, 5.65%, and 5.75% respectively.

The variable rates have also been adjusted, with the Standard Variable Rate now at 6.34% and the TotalMoney Variable Rate, Mortgage One, and Rapid Repay rates each at 6.44%. BNZ's chief economist Mike Jones has pointed to rising global oil prices, higher freight costs, and a weaker New Zealand dollar as the key inflation risks behind the rate rises.

The bank is positioning itself for the spring selling season by offering competitive rates on certain terms. The Low Equity Interest Rate Premium continues to apply to all new or existing lending over 80% LVR, and BNZ's Better Future Home Loan top-up remains available at 1% p.a. for three years, capped at $80,000.