State-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.
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