The week kicked off with ANZ launching a market-leading one year fixed rate.
And it is ending today with Kiwibank advising that they will be reducing their 3, 4 and 5 year fixed rates on Monday.
The three rate reduction takes them to a regular market rate position.
However their new four and five year fixed rates of 6.69% and 6.79% are market leading rates among banks, sharing the five year position with SBS Bank.
The new three year rate from Kiwibank will be 'special' at 6.19%, -45 bps below their standard rate for this term. It joins their other 'special' rate for two years of 5.89%.
They will now have the lowest four year rate in the market all by themselves at 6.69%, a reduction of -11 bps. This is a standard rate without special conditions.
And their five year rate reduction is also a standard rate and will become 6.79%, a reduction of -16 bps.
'Special' rates require a minimum of 20% equity by the borrower.
Kiwibank also has a cash incentive for all new lending of $100,000 or more. They are offering a $2,500 Freedom Furniture gift card provided your "everyday banking is moved to Kiwibank". This incentive applies irrespective of the 'special' rate availability.
See all banks' carded, or advertised, home loan rates here.
The current incentive offers are here.
This is how the updated mortgage rates will compare as at 9:00 am Monday, September 8, 2014:
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. A Roost mortgage broker can be contacted by following this link »
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Fixed mortgage rates
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4 Comments
Its a tough call. I am thinking of fixing for another 6 months at 5% rather than 5.8% over three years. Something tells me that rates will be similar in six months. Grant A made a good comment the other day though - rather than trying to beat/play the market - decide around personal situation and whether you can/want to carry the risk....
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