Kiwibank is first out of the blocks in 2015 with mortgage rate reduction.
Today it has announced that its 2 year fixed rate offer will be cut to 5.55%, a 20 basis points reduction from 5.75%.
While this rate is better than those offered for this term by the main banks, it is not as sharp as the current special offer by SBS Bank at 5.49%.
Mid-January is the traditional time when the home loan market becomes very active and competition increases between banks.
Competitive responses to the Kiwibank move will likely come quickly.
In addition to its rate move down, Kiwibank is offering a cash incentive of $2,015 for all new home loan lending over $100,000. This is only a minor change in amount from its previous offer of $2,000.
To qualify your borrowing must be with at least 20% equity.
This cash incentive offer applies to all clients including those who borrow through the Government's Welcome Home Loan scheme.
All changes announced today are effective from Monday, January 12, 2015.
The wholesale cost of funds for a 2 year swap has actually changed very little between mid December and today.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how the updated mortgage rates will compare as at 8:00 am Monday, January 12, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.59% | 5.70% | 5.75% | 5.99% | 6.49% | 6.59% |
 |
5.59% | 5.70% | 5.75% | 5.85% | 5.99% | 6.49% |
 |
5.69% | 6.09% | 5.75% | 5.99% | 6.49% | 6.59% |
 |
5.69% | 5.55% | 5.89% | 6.39% | 6.49% | |
 |
6.09% | 5.75% | 6.39% | 5.99% | 6.79% | 6.49% |
| Co-op Bank | 5.69% | 5.75% | 5.75% | 5.99% | 6.40% | 6.49% |
 |
5.45% | 5.65% | 5.99% | 6.49% | 6.79% | |
| SBS Bank | 5.59% | 5.74% | 5.49% | 5.69% | 6.19% | |
 |
5.70% | 5.90% | 5.70% | 5.95% | 6.40% | 6.50% |
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP mortgage broker can be contacted by following this link »
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