Westpac has increased their interest rates following the OCR increase announcement, making them the second bank to do so after ANZ.

Both special rates for these banks for one year are sitting at the 6.5 percent mark, with the expectation that they'll go up to 7 percent in the first few months of 2023.

Brad Olsen, Infometrics Chief Economist says that these rates will be stressful for borrowers, as 46 percent of them will be expected to spend half their income on mortgage payments.

Brad also states that employment numbers are still at a high point, but that's not expected to be a buffer for long based on economic predictions for 2023.

LISTEN ABOVE

 

• Second major bank hikes mortgage rates
• ANZ increases home loan rates - first major bank to hike after OCR rise
• Forecaster expects other banks to follow ANZ in lifting mortgage rates