Kiwibank first to cut variable below 6%
19th Feb 09, 11:22am
Kiwibank announced it would cut its variable mortgage rate by 50 basis points to 5.99%. It is the first New Zealand bank to cut this rate below 6%. The will be the lowest variable mortgage rate in New Zealand since August 1965, according to Reserve Bank data. "There are strong indications that there will be a further cut in the Official Cash Rate next month, so we are cutting our variable rate in anticipation of this," Kiwibank Chief Executive Sam Knowles said. Currently the lowest rates on offer in New Zealand are BNZ's six month rate of 5.69% and Kiwibank's one year rate of 5.69%. For a full list of mortgage rates see here. Kiwibank also lowered its three year fixed mortgage rate by 50 basis points to 5.99%. This brings the rate in line with BNZ, HSBC, SBS and Westpac.