Moving in advance of next week's expected 100 basis point cut in the Official Cash Rate to 5%, Kiwibank has slashed its one year fixed mortgage rate by 50 basis points to 5.99%.
This is the first time mortgage rates have been under 6% since July 2003, when the average 1 year fixed rate stood at 6.09% and Kiwibank, AMP Bank and HSBC had 1 year rates of 5.99% and 5.95% respectively, according to our data on historic mortgage rates.
The previous record lows in modern times were in November 2001 when ANZ and TSB offered 6 month mortgage rates at 4.95%.
Kiwibank also cut its six-month rate by 50 basis points to 6.49%, while all its other fixed term rates were cut to 6.99%, including a 1 basis point cut in its 2 year rate and an 11 basis point cut in its 3 to 5 year rates. Kiwibank did not change its variable mortgage rate at 6.99%. See all of Kiwibank's rates and those of its competitors on our mortgage rates table.
Kiwibank Chief Executive Sam Knowles said the home loan market is very competitive and the bank is determined to have the best rates available.
"We have always prided ourselves on having home loan interest rates that are slow to rise and fast to fall," Knowles said.
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