Kiwibank, which led its rivals in cutting two-year fixed home loan rates last week, has now followed them by reducing its three, four and five year rates.
Kiwibank said it had dropped its three-year rate by 45 basis points to 7.25% per annum from 7.70%, four-year by 65 basis points to 7.55% from 8.20% and five-year by 75 basis points to 7.75% from 8.50%.
Last Thursday morning Kiwibank cut its two-year rate to 6.99% from 7.30%. Other banks followed by also cutting longer term rates. The cuts to fixed rates come after falls in long-term swap rates. (See our chart below).
Sister banks ANZ and National announced a 75 basis point cut in their five year mortgage rate late on Thursday, triggering moves in response by BNZ, ASB and Westpac on Friday.
Their five year mortgage rates are now grouped around 7.75% to 7.85%, a significant flattening of the mortgage rate curve. However, these rates remain well above the 5.9% rates that most are charging for their variable rates. See all bank mortgage rates here.
No chart with that title exists.
![endif]__comment__end__>![endif]__comment__end____comment__start__[if>![endif]__comment__end____comment__start__[if>![endif]__comment__end__
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.