Kiwibank cut its 2 year mortgage rate by 10 basis points to 6.09%, the lowest now offered by a bank and the first move by a bank to cut its long term rates after Reserve Bank Governor Alan Bollard warned last week that long term wholesale rates had risen too far. Kiwibank also cut its 6 month rate by 20 basis points to 5.79%, bringing it in line with ANZ National, SBS and Westpac. The lowest 6 month rates are still 5.50% offered by ASB and BNZ and 5.45% offered by ASB cousin, Bankdirect. Kiwibank said its new 2 year rate was now only available for home loans where a borrower had at least 20% equity in the value of the property provided as security. Previously Kiwibank's 'special' 20% deposit rate was for 1 year. Otherwise an additional 0.20% will be added onto the rate. The rate changes are effective today. See our mortgage rates page here.
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