by Paul McBeth
ASB Bank has just joined the other trading banks by boosting its floating mortgage rate from 7.60 per cent to 8.10 per cent.
The increase is effective immediately for new borrowers and is a result of sustained higher wholesale rates, the bank says. After the Reserve Bank increased its Official Cash Rate ten days ago, a number of mortgage lenders have put up floating and shorter term fixed rates, generally for the six months and one year terms.
Floating rates on offer currently range from 7.10 per cent to 8.10 per cent, but there seems little doubt that the overall direction is up. A number of economists are now tipping floating rates won't ease back until mid next year, after going as high as 10 per cent.
ASB Bank says its latest rates increase equates to a monthly increase of $31.04 (on a loan of $100,000 over 20 years). The bank has also lifted its one-year rate from 7.95 per cent to 8.10 per cent.
For further details, see our mortgage rates table