We missed it yesterday, but Kiwibank has also raised all its floating mortgage rates, although retains the position of 'lowest in market'

We missed it yesterday, but Kiwibank has also raised all its floating mortgage rates, although retains the position of 'lowest in market'

This is an addendum to our story yesterday about Kiwibank's fixed mortgage rate increases.

We missed noting another important change: Kiwibank has raised its floating rates as well.

They have raised their standard floating rate by +15 bps to 5.40%.

And raised their Offset Mortgage rate by +15 bps to 5.40%.

In addition, their revolving credit rate has been increased by +15 bps to 5.45%.

These changes are effective now for new clients, and on January 23, 2017 for existing clients.

Even after these increases, Kiwibank still offers the lowest floating rates of any New Zealand bank.

This places their new rate in the floating rate marketplace as follows:

below 80% LVR  Standard Offset Revolving  Equity
  % % % %
5.59   5.70  
ASB 5.65   5.55  
5.64 5.64 5.70  
Kiwibank 5.40 5.40 5.45  
Westpac 5.65 5.65 5.65  
5.45   5.45  
HSBC 5.59   5.79  
HSBC 5.54   5.55 6.89
5.54   5.54 7.25

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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Increases in mortgage rates will affect those with "interest only" loans over a period of time more so than those who have table loans. The reason is that the principal upon which they are based, has not reduced one iota.

Some borrowers didn't realise that the interest-only period is for a max of 5 years. Many of those arrangements will be maturing in the coming year. Then P&I kicks in.
Additionally, who'd want to bet against banks 'asking' their off-set customers to repay the amount against their borrowing at renegotiation time? Anyone with an Offset Account might want to look at where they have those funds just before maturity of their loan!

Pedantic note to ed: you may want to check the above with Kiwi ... looks like they all went up 15bps and revolving and offset are the other way around :)

Happy with the small increase and looking forward to the February house rise in Auckland.

Looking forward to further decreases in house prices in Auckland, and hopefully rising term deposit rates from Kiwibank

So Ted - aka Mark Stansfield" aka "Paul Cranston" aka "David Sumner" aka "Paul Stevens" aka "John Prentegast"...

Would you like to illuminate us all why you go on multiple sites using other names to push the same RE barrow pretty much word for word?

I see you via your other aliases on the NBR where you are also recognised as an RE troll..

Who is paying you? Or are you just really really bored...

Troll. He needs to be ignored, no reaction, so he gives up polluting this site -

In Internet slang, a troll (/ˈtroʊl/, /ˈtrɒl/) is a person who sows discord on the Internet by starting arguments or upsetting people, by posting inflammatory,[1] extraneous, or off-topic messages in an online community (such as a newsgroup, forum, chat room, or blog) with the intent of provoking readers into an emotional response[2] or of otherwise disrupting normal, on-topic discussion,[3] often for the troll's amusement.

Because I am defending a million hard working New Zealand family home owners?

There is nothing useful to family home owners in having increases in a transient theoretical value of their homes caused by easy credit that will inevitably be unwound (either by increased LVR and DTI regulation by the RBNZ or by a crisis).

Home values have also supported small to medium business the lifeblood and of the New Zealand economy.

you forgot to air quote "values"

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