Kiwibank cuts 1-year fixed home loan rate to 4.99% from 5.25%, withdraws 6-month special

Kiwibank cuts 1-year fixed home loan rate to 4.99% from 5.25%, withdraws 6-month special

Kiwibank has cut its standard one-year fixed-term home loan rate by 26 basis points to 4.99% from 5.25%, which is the lowest standard one-year rate advertised by a bank.

In a statement Kiwibank CEO Paul Brock also said there were no special conditions attached to the new one-year rate such as borrowers requiring a certain percentage of equity to secure the rate.

Brock said the one-year term would give customers some certainty as they watched and waited to see what would happen to rates in the longer term.

The bank has also withdrawn its 4.75% six-month special promotion. It had claimed this rate was the lowest offered by any bank for decades.

The only other bank with an advertised, or carded one-year rate at 4.99% is HSBC, but it is only available to that bank's "premier" customers who, to qualify, need a minimum combined home loan of NZ$500,000 or NZ$100,000 in savings and investments.

See all banks' advertised home loan rates here.

This positions the Kiwibank rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
           
ANZ 5.19% 5.45% 5.80% 6.10% 6.30%
ASB 5.45% 5.45% 5.75% 5.95% 6.25%
BNZ 5.25% 5.40% 5.80% 6.10% 6.30%
Kiwibank 4.99% 5.25% 5.65% 5.99% 5.99%
Westpac 5.19% 5.40% 5.90% 6.15% 6.25%
           
Co-op Bank 5.25% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS / HBS 5.25% 5.30% 5.65%   5.99%
TSB Bank 5.25% 5.30% 5.90% 6.10% 6.50%

TSB Bank also has a lower rate; it has a Special 15 month offer of 4.95%.

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lowest advertised rate at least.
 
negoiating a floating rate lower than this hasnt been a problem for myself or others that i know personally.

Ignore the published rates - most banks will do 4.65% to 4.85% fixed for 12 months and some will do 4.95% for 3 years - don't accept published rates - negotiate with your banker!

4.95% for three years? Which bank(s) are doing that, how big are the loans and what sort of LVRs are they allowing?

Yeah that sounds a little too good to be true, which as you know is always a cause for suspicion :-)

This is good news; I fixed for one year last JUne at 4.99% because I was betting on the global economy going down further taking Australia and NZ with it and leading to an even lower rate come renewal time this June.

Good news: the world economy is looking like rubbish and OCR rate cuts even below the record low of 3% are no longer in the realm of fiction here in Oz. I expect the RBNZ to follow suit as NZ goes even further down the crapper, and banks to pass at least some of this on (grudgingly, under huge pressure, while moaning loudly that borrowing costs have gone up - a lie - before announcing record quarterly profits. Again).

3.99% anyone? You read it here first :-)