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%.