Kiwibank cuts floating mortgage rates & 3 fixed-term rates

Kiwibank cuts floating mortgage rate by 20 basis points, flexible & offset rates by 15, and 3-5 year fixed rates by up to 36 basis points

11th Mar 16, 11:49am by Gareth Vaughan

Kiwibank has reacted to Thursday's 25 basis points cut to the Official Cash Rate by dropping its floating home loan rate by 20 basis points, its revolving and offset rates by 15 basis points, and by making cuts of between 10 and 36 basis points to its three, four and five-year fixed home loan rates.

Dropping its floating rate by 20 basis points aligns Kiwibank with the Co-operative Bank at 5.45%, which was the first bank to move cutting its floating rate by the full 25 basis points yesterday. Subsequently ANZ and Westpac have dropped their floating rates by a wafer thin 10 basis points to 5.64% and 5.75%, respectively.

As well as the floating rate cut, Kiwibank says it's reducing its offset and revolving home loan rates by 15 basis points to 5.50%. The cuts are effective from Monday March 14 for new customers, and from Thursday March 24 for existing customers.

Kiwibank is cutting its three-year fixed rate by 10 basis points to 4.75%, its four-year fixed rate by 35 basis points to 4.90%, and its five-year fixed rate by 36 basis points to 4.99%.

The state owned bank's new three-year rate matches carded, or advertised, rates offered for the same term by ASB and the Co-operative Bank, with only HSBC's "premier" customer rate of 4.59% lower. Over four years Kiwibank's new rate is only bettered by HSBC's "premier" customer rate of 4.79%. The 4.99% five-year rate is the equal best on offer for this term from a bank with HSBC, again for its "premier" customers.

Meanwhile, Kiwibank has also cut its 32-day Notice Saver rate by 25 basis points to 2.75%, and cut its three-month Notice Saver rate by 25 basis points to 3.20%.

See all banks' carded, or advertised, home loan rates here.

Floating	Prior rate	New rate	Change	effective from
	%	%	%	for existing clients

	5.74	5.64	-0.10	March 29, 2016
	5.75	5.55	-0.20	March 24, 2016
	5.79
	5.65	5.45	-0.20	March 24, 2016
	5.85	5.75	-0.10	March 29, 2016

	5.70	5.45	-0.25	March 11, 2016
	6.10
ICBC	5.60
	5.74
	5.74

Mortgage rates

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Source: interest.co.nz

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10 Comments

by KH | 11th Mar 16, 12:11pm 1457651462

Kiwi Bank here we come..
I have a whole bunch of smallish borrowings around a commercial property. Westpac took me for granted when I tried to rationalise the complication. They need to think of me as a customer. They can't and they are history.
Over the next year or two I will remove a lot of other business. I am not generally a borrower but they should have thought of future years.

by Wolf of Queen Street | 11th Mar 16, 12:46pm 1457653576

Yeah Westpac is annoying me lately also. Because I no longer owe them money that couldn't care less about me. As you say, they should be thinking about the future.

by Justice | 11th Mar 16, 12:55pm 1457654127

KB are no different if you owe them nothing either believe me. Banks only want the debt hungry. Be interesting if KB drop savings rates after the CEO's comments two weeks ago

by sharetrader | 11th Mar 16, 1:01pm 1457654519

agreed if your not one of the great indebted hoard they are not interested

by HeavyG | 11th Mar 16, 3:08pm 1457662114

Shop around. We recently refinanced and ANZ blew Kiwibank out of the water.

by Geoff | 11th Mar 16, 4:00pm 1457665242

by Geoff | 11th Mar 16, 4:01pm 1457665284

Good option KH. Did the same last year, transfered over to Kiwibank, got a 1% cash incentive from them on 5 small loans...see what you can do. $15,000 in incentives.

by Stephen Hulme | 11th Mar 16, 12:55pm 1457654100

It never crossed my mind that the booming residential house price market was in need of lower interest rate mortgage support. But it seems logical those saving to get on the ladder are in most need of supplementary deposit returns to gather the necessary down payment. And not a public mention yet about lending discounts being offered to struggling dairy farmers.

The Property Institute says the latest cut to the official cash rate is likely to refuel Auckland property prices.

The Reserve Bank cut the official cash rate to a record low of 2.25 percent yesterday, with more reductions tipped for later this year.

The Property Institute's chief executive Ashley Church said banks were expected to lower mortgage rates in response.

He said the cut was helping create a perfect storm of conditions in the Auckland market, combined with supply issues and the expected re-emergence of chinese investment into Auckland over the next few months. Read more

by Brendan | 11th Mar 16, 5:22pm 1457670121

Be great if there was a portal for like minded borrowers, to share recent obtained rates from our friendly banks. Keep kiwi punters informed. It's going to assist keeping $ in our local economy in the long run.

by KH | 12th Mar 16, 2:17am 1457702255

Interest.co is that portal Brendan.