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Kiwibank cuts variable mortgage rate to 5.65%
February 8th, 2010State-owned Kiwibank has cut its variable mortgage rate by 14 basis points (bps) to 5.65%, making it the second lowest bank variable rate behind BNZ’s headline Total Money rate of 5.59%.
At the same time, Kiwibank hiked its 18 month mortgage rate by 10 bps to 6.49%. See and compare all mortgage rates here.
While fixed mortgage rates have been rising in recent weeks, variable rates have remained stationary at the low end of the mortgage rate curve. Kiwibank is the first bank to change its variable rate this year.
Variable rates are likely to remain at their lows until the Reserve Bank of New Zealand (RBNZ) decides to start increasing the Official Cash Rate (OCR) off its record low of 2.5% later this year. RBNZ governor Alan Bollard said on TVNZ’s Sunday Q&A that the bank was sticking with its expectation that it would raise the OCR around the middle of the year.
Many home owners are now opting for variable mortgage rates rather than fixed rates. For more, see here.
Tags: Kiwibank, Mortgage rates
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February 8th, 2010 at 9:27 am
Bernard…….please can you update us on the help.. re taking advantage of the aussie deposit rates. Cheers
February 8th, 2010 at 8:29 pm
You say Kiwibank is first to change variable rate this year. Last week ANZ dropped it’s Simple variable to 5.69 from above 6%.
February 8th, 2010 at 9:50 pm
Variable mortgages should be under 5% soon
February 8th, 2010 at 10:04 pm
Variable mortgages will be back over 6 % soon .
February 9th, 2010 at 7:55 am
When the outflow of money exceeds the inflow, then rates will be whatever debtors will pay.
Shon-Key cannot still predict what the rest of the World will do long term…and the way he is going he will NOT be around LONG-TERM.
No matter what the preoccupation with housing is in this country, an investment is something you make money on, not lose your shirt.
A debt owed on a house you LOST because of SUB-PRIME is still a debt. Equity has a habit of fleeing as well as increasing. The debt is compounding.
Just ask the populations of the World. ICELAND, GREECE, USA, UK, et al.
They are clawin and clutching at straws, even though there interest rates are way below New Zealand’s, hence the inflow.
New Zealand has been propped up by overseas funds. It is still being touted as the place to live for wealthy investors.
Little do they know on arrival, we have nothing to invest in EXCEPT houses or tattoo parlours.
While you can still borrow at the LOWEST rates New Zealand has ever known, please do not expect this to continue. When the rest of the World goes UP, watch for the pandemonium.
Funds transfer is still so much easier than EXPORTING a house.
Many thanks for your total contributions over the years.
It is what allows me to do what I do….
February 10th, 2010 at 11:06 am
@BM & RT: I dont think either is that likely, myself…I suspect it will hang on the Budget….if Jelly Key does a land tax and lower business tax to stay neutral then I think AB could drop the OCR if need be….otherwise if nothing is done he is going to be hamstrung IMHO….
I have been somewhat surprised that Kiwibank seemed to have “lost” their price advantage edge over the last year, this now seems to be returning. Have they got some more capital?
regards