Kiwibank cuts its fixed mortgage rates across the board - Westpac cuts too

Kiwibank is cutting its fixed mortgage rates across all terms.

The heaviest rate cuts are for four years where its rate moves to 6.79%, down 51 basis points from 7.30%.

Its two year and five year fixed rates are reducing 41 basis points. The five year rate falls to 7.19% and the two year fixed rate falls to 5.89%

The three year rate falls to 6.39% from 6.70%, and both the 6 month and one year rate falls to 5.65%. That is the same as the current variable rate which is unchanged in this round of reductions.

These new, lower rates are effective Friday, October 28, 2011.

The bank also has an 'off-card' special of 5.99% for a 30 month term but this is expected to be withdrawn in the next few days.

Kiwibank's 'Offset variable' rate remains at 5.50% pa.

These new rates position Kiwibank as the bank offering the lowest mortgage rates in the market (except that HSBC has a lower fixed rate for six months for its Premier product.)

Update: Westpac has also cut its one year rate to 5.85% from 5.95%.

Mortgage rates for all banks and other financial institutions are set out comprehensively here »