Borrowers used to price wars in the popular two-year fixed-rate mortgage market should turn their attention to a battle between longer-term fixed-rate loans.
Wednesday, July 20th 2005, 8:28AM
by The Landlord
Kiwibank has slashed its five-year fixed rate to 6.99%, the lowest rate on offer last week from any lender over any time frame.
National Bank and ASB have cut their five-year rates as well, but to only 7.4%, says market-watcher Philip Macalister from www.goodreturns.co.nz.
He says the Kiwibank move is an attempt to regain market share lost when it did not join last year's two-year rate war sparked by the BNZ.
Kiwibank's Bruce Thompson says the move provides an alternative to chasing short-term rates.
He says Kiwibank can offer the low rates because money markets are forecasting long-term declines in interest rates.
