A major New Zealand bank is the first to move on the back of last week's historic OCR rise.

ANZ has lifted its floating and flexible mortgage rates by 65 basis points - all fixed term rates are now over 7 per cent for those who don't have a 20 per cent deposit or equity.

All eyes are now on how other big banks will react.

Infometrics Chief Forecaster Gareth Kiernan told Kate Hawkesby he is expecting other banks will do the same.

He says it's a massive squeeze on people.

Kiernan says Reserve Bank modelling suggested 46 percent of borrowers who took on a loan last year, would be paying more than half their after-tax income servicing a mortgage, once mortgage rates hit seven percent.

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