State owned Kiwibank has launched another "special, limited time" home loan offer with the latest a 4.99% one-year fixed-term interest rate on offer to customers with equity of at least 30% in their home.
The offer is 66 basis points below Kiwibank's advertised one-year rate of 5.65%.
"Kiwibank today launched a special one-year home loan (interest) rate of 4.99 per cent per annum," Kiwibank said.
"The rate will only be on offer for a limited time and requires equity of 30% or more."
Previous "special, limited time" offers from Kiwibank over the past couple of years have typically run for about three weeks.
The Kiwibank 'special' gives it the lowest one-year rate advertised by a bank. HSBC offers 5.29% to its premier customers and Westpac's rate is next lowest at 5.59%.
5 Comments
Fixing at 4.99% fine - compared to your 6%, after one year, to be breakeven, the average interest paid must be no greater than 6.33% for the next 3 years. And the last time I looked, 4.99% is less than 5.25%. A sensible move - but best used to leverage with your existing Bank rather than change - as is pointed out elsewhere Kiwibank aren't competitive through the whole yield curve.
A good number of rural customers (in which space there actually is quite a bit of competition) are still paying 2.50% on 90d Bill = ~5%
Oh dear.....I would say 6% for 4 years looks at best, reasonable probably a little high for that length of time.
My concern is actually short term high volitility as the EU implodes....so its not so much the savings as insurance protection for that short 12months or so period...once the dust settles I expect the floating to drop a bit more and stay there.....assuming wholesale investors dont all panic and run to the USA of course....
My experience with banks has also been you have to have significant dealings with them for them to want to move from the std rate.....on anything......so <$100k they just dont care.......
regards
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