Kiwibank cuts home loan rates

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Kiwibank has cut 0.31% off its two-year fixed home loan rate, reducing it from 7.30% to 6.99%.

Thursday, July 1st 2010, 10:58AM

Kiwibank chief executive Sam Knowles said the rate cut was to give some certainty to customers who are concerned about interest rate volatility.

"This is another option for home loan customers looking to lock in very competitive rates and to spread their lending risk.

"Just last week we introduced a 12-month cap option on our variable (floating) rate and are now giving some longer term security for customers."

The cap option allows customers on a floating rate to ensure the rate does not increase above 6.50% p.a. for 12 months. The cap option costs $250. Kiwibank's present variable rate is 5.90% p.a..

The Kiwibank two-year rate is at least 20 basis points below the other big banks. (Check and compare rates here www.mortgagerates.co.nz)

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