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%.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.