Kiwibank drops 2-year mortgage rate by 26 basis points to 4.99%

Kiwibank drops 2-year mortgage rate by 26 basis points to 4.99%

Kiwibank has introduced a new 4.99% mortgage rate for two year terms, which is a reduction on its previous rate of 26 basis points.

The bank said that its new rate matched the rate previously offered by Kiwibank in October 2012.

Today's reduction by Kiwibank brings it into line with the lowest two year rates in the market also being offered by HSBC and SBS Bank.

Kiwibank said there were are no special conditions attached to the new offer, which was available to new and existing customers.

The one-year special of 4.99% p.a. that has been on offer for five weeks by Kiwibank returns to the former rate of 5.25 p.a.

See all advertised mortgage rates here.

This positions the Kiwibank's mortgage rates among the New Zealand banks as follows:

  1 yr 2 yrs 3 yrs 4 yrs 5 yrs
5.19% 5.45% 5.80% 6.10% 6.30%
ASB 5.19% 5.45% 5.75% 5.95% 6.25%
BNZ 4.95% 5.40% 5.80% 6.10% 6.30%
Kiwibank 5.25% 4.99% 5.65% 5.99% 5.99%
Westpac 5.09% 5.40% 5.90% 6.15% 6.25%
Co-op Bank 4.99% 5.35% 5.75% 5.99%  
HSBC Premier 4.99% 4.99% 4.99% 5.50% 5.75%
SBS Bank 4.99% 4.99% 5.65%   5.99%
TSB Bank 5.25% 5.30% 5.75% 6.10% 6.30%

TSB Bank still has a low rate Special 15 month offer of 4.95%.

Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »

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That low 2 year rate should give house prices another boost!

For those that have negotiated it has been around five percent, floating or fixed, all this year so it has already been a boost for housing.