Kiwibank has cut its one to five year home loan rates by between 34 and 60 basis points, dropping its one-year rate to a record low 2.65%.
The rate changes are effective from Monday, and available to new and existing customers with 20% equity.
Kiwibank has dropped its one year rate to 2.65% from 2.99%, its two year rate to 2.79% from 3.39%, its three year rate to 3.25% from 3.65%, its four year rate to 3.45% from 3.99%, and its five year rate to 3.55% from 4.09%.
The 2.65% one year rate goes under the 2.69% two year rate announced by ASB on Friday morning, making it the lowest carded, or advertised, mortgage rate in New Zealand ever.
Kiwibank head of borrowing and deposits Chris Greig says the bank "will continue to review our rates to ensure that we are competitive, and both our deposit and lending customers are getting a fair deal."
"So far, we have not observed the pass through of wholesale interest rate reductions to retail interest rates to the extent we might expect in normal times," the Reserve Bank said.
One useful way to make sense of these new lower rates is to use our full-function mortgage calculators.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options.
Here is the updated snapshot of the advertised lowest fixed-term rates on offer from the key retail banks at this time.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at May 22, 2020||%||%||%||%||%||%||%|
|Bank of China||3.89||2.79||2.89||2.89||3.19||3.79||3.89|
|China Construction Bank||4.70||2.80||2.85||3.19||3.30||3.45|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.