Kiwibank has cut its one year fixed-term home loan rate from 3.55% to 3.39%, a new record low, despite the Reserve Bank not dropping the OCR to 0.75% this week as expected.
Kiwibank also has good news for savers, and has increased its one year term deposit rate from 2.70% to 2.75%. However, it has also increased its 2 year fixed home loan rate from 3.45% to 3.55%.
“Implications from the ‘no rate change’ decision were that wholesale rates increased. It’s likely we’ll be the outlier reducing our one-year home-loan rate but that is a position we’re comfortable to hold,” Chris Greig, Kiwibank General Manager for Borrowing and Savings said.
“We’re keen to see a continuation in the momentum we’ve had in growth over the past year as more New Zealanders choose to bring their banking to Kiwibank.”
The New Zealand bank is also offering an additional incentive of $3,000 cash back for customers who have at least $250,000 in new lending, and who make the switch to Kiwibank as their main mortgage provider.
There is a minimum 20% equity for the one-year lending rate and cash back offer. The new rates are effective from Monday 18 November, and will available for a limited time.
“We’ll continue to review our rates to ensure that we are competitive, and both our deposit and lending customers are getting a fair deal,” Greig said.