A major bank has increased the rate it uses to check potential borrowers can afford a loan. 

ANZ has upped its test rate to 9.1%. 

That's despite home loan rates sitting around 7% for a two-year fix.  

In past week ANZ and Westpac have raised interest rates.

Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking the test rate doesn't make much of a difference. 

He says the good news for first home buyers is that compared to two years ago, because property prices are lower, they can still afford the same amount based on the test rate.

LISTEN ABOVE

A major bank has increased the rate it uses to check potential borrowers can afford a loan.  
ANZ has upped its test rate to 9.1%.  
That's despite home loan rates sitting around 7% for a two-year fix.   
In past week ANZ and Westpac have raised interest rates. 
Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking the test rate doesn't make much of a difference.  
He says the good news for first home buyers is that compared to two years ago, because property prices are lower, they can still afford the same amount based on the test rate. 
LISTEN ABOVE

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.The sharpest voice and mind in the business, Mike drives strong opinion,...