Kiwibank is cutting its six month fixed term mortgage rate by 40 basis points to 5.95% from 6.35% for "a limited time only."
The state owned bank says the change is effective from 8am on Friday morning.
The temporary cut from Kiwibank, whose mortgage book probably pushed above NZ$10 billion in the December quarter, follows a temporary 30 basis points cut to the bank's one year fixed rate in January which gave it the lowest advertised one-year rate offered by a bank at 6.15%. That "limited time" offer lasted for three weeks.
Kiwibank said today the six month cut was being promoted as another “special” and would only be held for a limited time. The 5.95% rate means Kiwibank now advertises the lowest six month rate among the major banks aside from HSBC's 5.74% for well heeled customers. See all bank mortgage rates here.
The temporary six month rate is lower than Kiwibank's 6.15% variable, or floating, rate.