NZ Banks Hike Floating Home Loan Rates by Up to 25 Basis Points

New Zealand's major banks have raised their variable and floating home loan rates in response to the Reserve Bank's latest official cash rate (OCR) increase.

The OCR was lifted by 25 basis points to 2.75%, marking its second consecutive rise, following a 25-basis-point hike from 2.25% to 2.5% in July.

ANZ was the first bank to move, with its floating home loan rate rising from 6.04% to 6.29%, and its flexible rate increasing from 6.15% to 6.40%. The changes will take effect for new loans from September 9 and existing loans from September 23.

The other major banks - ASB, BNZ, and Westpac - followed suit with matching increases of 25 basis points to their variable home loan rates. While fixed rates remain unchanged for now, the gap between variable rates and shorter-term fixed rates has grown, suggesting that fixed-rate refinancing conversations will dominate adviser discussions in the coming weeks.