Kiwibank hikes floating, offset and revolving mortgage rates by 15 basis points each

Kiwibank has increased both its floating and revolving mortgage rates by 15 basis points effective today (Monday).

The bank's new floating and offset rate is 5.70%, and its new revolving rate is 5.75%.

Even with the increase, Kiwibank's floating rate is still below the floating rates on offer from the big four banks. However, The Co-operative Bank and TSB Bank have lower rates, as does HSBC for its premier customers.

“Kiwibank continuously monitors the interest rate environment and always aims to be highly competitive. Recently it has become both more expensive for us to fund our loans and the level of funding uncertainty in the market has increased. As such an adjustment was necessary, however we still maintain one of the lowest variable [floating] rates in the market of any bank despite this change," Kiwibank says.

See all banks' carded, or advertised, home loan interest rates here.

Here is a snapshot of the current floating rates on offer from the key retail banks and their recent changes.

below 80% LVR as at
Dec 31, 16
as at
Jan 31, 17
as at
Feb 28, 17
as at
Mar 31, 17
as at
May 8, 17
        %  
5.59 5.69 5.69 5.79 5.79
ASB 5.65 5.80 5.80 5.80 5.80
5.64 5.79 5.79 5.90 5.90
Kiwibank 5.25 5.40 5.40 5.55 5.70
Westpac 5.65 5.65 5.65 5.75 5.84
           
5.55 5.55 5.55 5.65 5.65
HSBC 5.59 5.59 5.59 5.59 5.59
HSBC 5.59 5.54 5.54 5.79 5.79
5.54 5.54 5.54 5.65 5.65

And below is a snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
  % % % % % % %
4.99 4.49 5.05 4.79 5.49 5.70 5.85
ASB 4.95 4.45 4.70 4.74 5.09 5.49 5.69
5.35 4.59 5.05 4.79 5.09 5.89 6.09
Kiwibank 4.99 4.69   4.79 5.25 5.75 5.99
Westpac 5.25 4.59 5.05 4.79 5.09 5.69 5.49
               
4.80 4.59 4.75 4.85 5.25 5.65 5.85
HSBC 4.85 4.09 4.09 4.29 4.89 5.29 5.59
HSBC 4.99 4.59 4.85 4.79 5.25 5.65 5.85
4.85 4.55 4.75 4.75 5.15 5.65 5.79

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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6 Comments

Did Kiwibank give any reasons for the hikes ?

No. But I am asking them. Will update once I hear.

Story updated with their reasoning now.

Could it be they just want more margin? They are still at the "sharp" end of rates...

Mortgage rates bottomed in September quarter. As 41 Billion of Auckland's interest only loans steadily come for reset someone is going to be in for a shock.

Many of the 5 year fixed rates are pushing up to 6%. Perhaps in a couple of years rates will be around 8% for a 3 year fixed term. It would be interesting to see an extrapolation of future interest rates based on current data/trends.

Where do you guys see rates at the end of 2018?