Major banks drop home loan rates below 3%

by Roxanne Libatique11 May 2020

ASB and Kiwibank have cut their home loan interest rates below 3%, a new record low for the major banks in New Zealand.

ASB has decided to offer a 2.99% two-year rate and Kiwibank a one-year rate to help customers manage their home loans and support others into homeownership amid the COVID-19 crisis.

Craig Sims, the executive general manager of retail banking at ASB, said they are committed to improving their products and services to help customers face the impacts of the pandemic.

“This has been a difficult time for a lot of our customers. While we have put in place a number of support options, including mortgage repayment deferrals and interest-only payments, we’re continually evolving what we are doing to help Kiwis get through the impact of COVID-19. Offering this two-year special rate is part of that,” Sims said, as reported by Stuff.

“We know every bit helps and we’re proud to be supporting New Zealanders with this special low rate, which we hope will help our customers manage their home loans. We’re also confident it will be welcome news to those first home buyers looking to start their homeownership journey.”

Nicole Pervan, the general manager of product at Kiwibank, added: “Customers with a fixed interest rate expiring within the next month are likely to roll on to a new interest rate 1% lower than their current rate. “On an average-sized loan, this will reduce repayments [between] $50 [and] $70 [per week], which will go a long way at this time. Customers have the flexibility to pay off their loan faster or keep that money in their back pocket for a rainy day.”

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