"A sucker punch": ASB's mortgage rates increase once again

ASB is increasing mortgage rates once more.

The financial institution is raising its interest rates for the one-year and 18-month terms by 20 basis points, consequently bringing them up to 7.45% and 7.15% respectively.

Additionally, the company is increasing its rates for the two and three-year period by 16 basis points, resulting in percentages of 7.05% and 6.85% respectively.

This occurs during a period when numerous New Zealanders are grappling with the expenses associated with daily life, while financial institutions are announcing substantial earnings.

In August, ASB announced that it had earned a net profit of $1,550 million after tax for the fiscal year ending on June 30, 2023. This marks a $132 million growth compared to the previous year.

Brad Olsen, the CEO and Lead Economist at Infometrics, informed Kerre Woodham that there has been a rise in global funding rates, specifically the 10 Year Bond Rate, which is having an impact on interest rates in New Zealand.