Kiwibank slashes two-year rate to provide certainty

Kiwibank has cut 31 basis points off its two-year fixed home loan rate, reducing it from 7.30% which is the median for all banks to 6.99%.

Thursday, July 1st 2010, 11:03AM 3 Comments

This makes its new rate 20 basis points lower than the closest bank which is TSB.

HSBC has an even lower rate of 6.74%, but to be eligible customers need to have minimum combined home loans of $500,000.

Kiwibank chief executive Sam Knowles says the rate cut is 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 floating rate and we 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% for 12 months and costs $250. Kiwibank's present floating rate is 5.90%.

 

« Kiwibank cuts home loan ratesRate rises wrong as economy stalls: NZIER »

Special Offers

Comments from our readers

On 1 July 2010 at 11:45 am Tania said:
Great work Kiwibank. For those of us struggling to sell a property in the current market this gives potential buyers somewhere to go for finance with a sharp rate plus all the other benefits that go with Banking with a Kiwi owned bank.

I certainly know where I would point any potential buyers for my house.
On 1 July 2010 at 2:12 pm BC said:
I wish I wasn't still stuck on a fixed rate from a few years ago. Kiwibank charge massive break fees if your situation changes in the future so be careful about fixing for 2 years.
On 6 July 2010 at 1:38 pm Tona said:
Yeah but i guess thats what fixing is all about, though. That said, hope the fixed rates keep on falling! :)
Commenting is closed

www.GoodReturns.co.nz

© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved