Starting this week, Kiwibank has reduced three of its longer fixed home loan rates.
But none of these reductions push its offers to market-leading levels.
It has joined most of the main banks in offering 4.49% for three years fixed, in their case this results in a -36 bps reduction. But it has chosen not to match ASB's 4.39% offer for this term, which is the market-leading position.
It has reduced its four year fixed rate by -20 bps to 4.99%. That is 'competitive' with mpost banlks, but not as low as the offers from ASB, or SBS Bank (who has the market-leading four year rate).
And it has set its five year rate at 5.09%, a -30 bps drop. But again, this is not especially notable.
In conjunction with these cuts, Kiwibank has also reduced its term deposit rate offers. Rates for nine months, 2, 3, and 4 years have been reduced by -10 bps. Rates for five years have been reduced by -15 bps. But, Kiwibank have raised its six month term deposit offer by +20 bps to 3.45%, a level that is notable in comparison with other banks, but actually lower than the 3.50% rate they were offering previously for a nine month fixed commitment - but has now been reduced to 3.40%. So it's an overall reduction.
Here is the full snapshot of the fixed-term rates on offer from the key retail banks.
|below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at September 24, 2018||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate which has been reduced recently to 5.95%.
And TSB still has a 10-year fixed rate of 6.20%.