State owned Kiwibank has kicked off the year with a limited time "special" home loan offer of 5.99% per annum for four years, undercutting all its main rivals.
Kiwibank says it has cut its four-year home loan rate by 80 basis points to 5.99% from 6.79% today. The lowest four-year rate offered by another bank is the 6.70% on offer from both ASB and the Co-operative Bank, formerly PSIS. See all bank mortgage rates here.
Borrowers wanting to take up the four-year special require a minimum 30% equity deposit, Kiwibank says, and the offer will be available for an unspecified limited time.
In a statement Kiwibank spokesman Bruce Thompson said the bank traditionally likes to kick-start the year with a market-leading rate.
“Over the past couple of years, the competition has been for shorter term lending, but Kiwibank is now offering home owners the opportunity to lock-in a very low rate for a longer period," Thompson said.
“There is considerable uncertainty about interest rates and about the world economies, so this four-year offer gives customers certainty."
Kiwibank began last year with a limited time one-year fixed-term home loan "special" rate by slicing 30 basis points off its one-year rate to 6.15%. The rate was in place for 17 days before returning to 6.45%. That offer didn't, however, require a 30% deposit.
In another of the bank's specials, Kiwibank cut its six-month fixed term rate by 66 basis points to 4.99% on November 17 last year in a move that did require the borrwer to have 30% equity in their property. That offer ran until December 19 with the rate then increased back to 5.65%.