Kiwibank has rushed out a big fixed rate mortgage cut.
Despite the Reserve Bank holding its OCR rate unchanged at 1.75%, the tone of that announcement is decidedly dovish.
And that signal is energising wholesale markets, both the exchange rate market and the wholesale interest rate market.
And now Kiwibank is bringing that into retail rate offers.
It has announced it will be cutting its 5.09% five-year fixed mortgage rate to just 4.29% on Monday, April 1. That's an 80 basis points reduction.
It is also the lowest five-year rate ever (the previous low was 4.79% offered by ASB in 2016), and is easily the lowest five-year rate offered by any bank at present.
Here is the full snapshot of the advertised 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 April 1, 2019||%||%||%||%||%||%||%|
In addition to the above table, BNZ has a fixed seven year rate of 5.95%.