Kiwibank has announced new lower longer term fixed home loan rates.
These new lower rates will apply from Monday, November 10, 2014.
Their new three year rate is 6.09%, a fall of 10 basis points from 6.19%. This rate is a 'special' with terms and conditions. The standard three year is unchanged at 6.65%.
Their new four year rate is now 6.59%, down 10 bps from 6.69%. This is their standard rate.
The new five year rate is a new 'special'. The rate is 5.99%, an 80 bps reduction below their standard rate which is unchanged at 6.79%.
These reductions by Kiwibank follow sharp reductions earlier in the week by SBS Bank.
A 5.99% five year fixed rate is the first time a home loan rate of this term has been below 6% in more than a year. In August 2013, SBS Bank was the last to offer such a rate.
Kiwibank's new five year rate is 20 bps below SBS Bank's current offer, 50 bps below Westpac, and a whopping 100 bps lower than the other three main banks.
Break costs will apply if you want or need to pay off a five year fixed loan early. However recently, Kiwibank changed its early payment allowances on fixed contract loans to be slightly more friendly.
Kiwibank's 'conditions' are here.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how the updated mortgage rates will compare as at 8:00 am Monday, November 10, 2014:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
5.69% | 6.25% | 5.75% | 6.09% | 6.99% |
 |
5.70% | 6.30% | 5.75% | 6.19% | 6.99% |
 |
5.89% | 6.09% | 5.75% | 6.09% | 6.59% |
 |
5.69% | 5.75% | 6.09% | 5.99% | |
 |
6.09% | 6.30% | 5.75% | 6.19% | 6.49% |
| Co-op Bank | 5.70% | 5.75% | 5.75% | 6.09% | 6.75% |
 |
5.39% | 5.75% | 5.99% | 6.99% | |
| SBS Bank | 5.59% | 5.74% | 5.49% | 5.69% | 6.19% |
 |
5.70% | 6.05% | 5.70% | 6.20% | 6.85% |
--------------------------------------------------------------
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 »
--------------------------------------------------------------
Fixed mortgage rates
Select chart tabs
7 Comments
Yeah i was getting excited over recent 3 year specials at rates not this good. Pretty hard to predict what happened with whole milk prices and as with most insurance policies you end up paying a bit more 4 that security and piece of mind.
This 5 yr rate will spur investors who value certainty when weighing rates againt yield.
The spring mortgage specials were delayed by the election - should start to see some 5.25% 3 year fixed rates soon and possibly 5.5% for 5 years. Will be plenty of gutted punters who fixed far too early when all the bank economists fooled the media into publishing "8% next year" stories. Given what is happening in Europe and USA/UK we could well see record low mortgage interest rates in NZ over the next 6 months as banks lower margins back to long term averages as they fight for market share. End result = higher property prices!
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.