Kiwibank cuts mortgage rates

Kiwibank drops advertised six-month, 1-year, and 2-year fixed-term mortgage rates to 4.99%

Property

Kiwibank drops advertised six-month, 1-year, and 2-year fixed-term mortgage rates to 4.99%

27th Sep 12, 1:25pm by Gareth Vaughan

Kiwibank has cut all three of its six-month, one-year, and two-year advertised, or carded, fixed-term mortgage rates to 4.99%, effective immediately.

The move sees the state owned bank's six-month and one-year rates both cut 26 basis points, and its two-year rate cut 46 basis points.

The new rates are only open to borrowers with at least 30% equity in their property.

Kiwibank's new one and two-year rates are the lowest advertised by any bank and its 4.99% six-month rate is bettered over that period only by HSBC's 4.85%, offered to that bank's premier customers who must have minimum combined home loan of NZ$500,000 or NZ$100,000 in savings and investments with HSBC.

See and compare all bank advertised mortgage rates here.

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9 Comments

by StanGoodvibes | 27th Sep 12, 1:33pm 1348709623

a few months back I took the uber-bearish stance of fixing at 5% for only one year because I expect that between China hard landing, America falling off the fiscal cliff, and (cilvil) war breaking out all over Europe, the Great Recession will see NZ's OCR drop to stimulate growth down to hithero uncharted depths, and by June 2013 I'll get an even better rate.

So far so good.

by MortgageBelt | 27th Sep 12, 1:44pm 1348710297

Where will the bottom be?

When will Floating rates drop?

Hard to decide to fix, when you think there might be a lower rate coming soon .....

by Gareth Vaughan | 27th Sep 12, 4:38pm 1348720694

There's always the option of fixing some & floating some...

by SK | 27th Sep 12, 2:08pm 1348711697

I wonder if price inflation could hit 20% pa in some parts of Auckland.

I believe Westmere/GreyLynn/Pons are already running at 15-17% pa

by MortgageBelt | 27th Sep 12, 2:21pm 1348712470

House price inflation may be the only factor that forces the RBNZ to hold or hike the OCR.

All other factors point to flat or lowering rates.

A dilemma - as always.

by SK | 27th Sep 12, 4:23pm 1348719830

The trick is to be on the right side of the dilemma!

by Boatman | 27th Sep 12, 4:46pm 1348721207

Which Bank will blink first and cut the flaoting mortgage rate? Anyone noticed how floating rates remain unchanged becuase no one want to erode thier margin ?

by rlm | 27th Sep 12, 5:23pm 1348723397

It's much harder for them to cut their floating rate than fixed because of all the discounts attached. If they were to reduce too much they'd need to renegotiate a bunch of the discounts. Floating headline rate will always be higher than what it really is.

by boofta | 29th Sep 12, 3:05pm 1348887916

There is still enough fat in the fire for one of the banks to take the Bull by the horns and seriously lower both floating and fixed rates, without saying it for what it is, it certainly smacks of collusion.