Home loan rates rise

Kiwibank and the Bank of New Zealand have raised some of their key home loan interest rates. BNZ has lifted its one-year home loan rates for owneroccupiers from 5.15% to 5.45%, and its two-year rate from 5.39% to 5.59%. Those rates are for borrowers with equity in their homes of 20% or more. BNZ charges extra ‘‘low-equity premiums’’ for people with less than 20% equity in their homes, though like all banks, that is calculated only when the loan is first taken out. Banks have pledged not to add low-equity premiums to loans for people who once had 20% or more equity, but who have seen large falls in the value of their homes. BNZ has not moved its floating home loan rates, or the rates on its personal loans, or overdrafts. Kiwibank has lifted its one-year fixed rate home loans for people with 20% or more equity in their homes to 5.39% from 4.95%. It’s also lifted its two, three, and four-year fixed mortgage rates, but has left its five-year fixed rate unchanged.