Kiwibank has announced a 6 month mortgage 'special' at 4.99%, which is below its normal 6 month rate of 5.65% and only applies to borrowers with a minimum of 30% equity in their property.
Kiwibank Chief Executive Paul Brock said it was the lowest rate ever offered by the bank and significantly undercut the other main banks, who are grouped around 5.7% with their 6 month rates.
“We’ve seized an opportunity to offer what we believe is a startlingly low home loan interest rate. We’re looking to grow our mortgage portfolio and to pass through savings to customers,” Brock said.
Kiwibank said the 6 month special was only available for those with at least 30% equity, otherwise the banks standard 6 month rate of 5.65% applies.
Kiwibank said the rate "will only be available for a limited time."