Banks are lifting mortgage rates again, despite the Reserve Bank keeping the OCR at 5.5 percent

ANZ's one-year fixed home loan rate will increase to 7.99 percent for a standard rate, and 7.39 percent for a special one.

It's while BNZ lifts to 7.25 percent, for borrowers with at least 20 percent equity.

Herald Wellington business editor Jenée Tibshraeny says banks consider a range of factors when looking at increasing rates.

She says one of the key issues banks look at is the cost of funding -- the money they borrow from wholesale markets -- and they say those costs have been elevated.