by Paul McBeth
Guardian Trust and Cairns Lockie are the latest mortgage lenders to increase their floating rates, both posting increases yesterday (Monday).
Guardian Trust has lifted its rate to 7.60 per cent, in line with the main trading banks and others such as AXA New Zealand and Ashburton Permanent. Meanwhile Cairns Lockie shifted up from 6.80 per cent to 7.15 per cent, citing recent increases in the 90 day bill rate and Official Cash Rate.
"We remain 45 points under the banks after this latest increase," said director James Lockie, "and we believe that we can preserve this margin for the foreseeable future".
While Equitable is one lender still under the 7.00 per cent mark, most other lenders have had their floating rates on the march since late January. Some economic commentators were expecting floating rates to peak at around nine per cent early/mid next year. However, they could well go higher on the back of stronger local inflation and higher US interest rates.
Mortgage rates details: see our table