Kiwibank has advised that they are cutting home loan rates for two fixed terms.
These cuts will make them more rate-competitive against their main big-bank rivals, but will not give them a market-leading position anywhere.
The changes will become effective on Monday, April 20, 2015.
First up, they have reduced their offer rates for standard one year fixed rates by -10 bps to 5.59%.
And they have made a reduction to their three year fixed rate offer.
For the 'special' three year rate, Kiwibank have trimmed -16 bps to 5.39%.
After these changes (and assuming there are no other changes before Monday), the new Kiwibank one year rate is completely unremarkable. Both BNZ and ANZ are offering a lower rate for this term, as are HSBC Premier.
The new Kiwibank three year 'special' is a much better priced being the lowest offer among their main big-bank rivals and all the smaller banks except HSBC Premier.
These are of course carded rate movements we are reporting here.
We continue to hear anecdotal stories of all banks matching or beating rate offers that are below carded rates. Achieving lower rates only comes through firm negotiation and will depend a lot on the details of the business you are bringing to the table.
The home loan market continues to be very competitive.
Also be aware, just because a bank is not formally offering a cash incentive does not mean it will shy away from matching a rival's offer. You can only know that in the 'heat' of an actual negotiation.
See all banks' carded, or advertised, home loan rates here.
The current non-rate incentive offers are here.
This is how mortgage rates from the banks will compare at 8am Monday, April 20, 2015:
| below 80% LVR | 1 yr | 18 mths | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
 |
5.49% | 6.09% | 5.39% | 5.79% | 6.49% | 5.89% |
 |
5.59% | 5.70% | 5.39% | 5.45% | 5.99% | 5.65% |
 |
5.49% | 5.39% | 5.55% | 5.65% | 5.75% | |
 |
5.59% | 5.39% | 5.39% | 5.99% | 5.79% | |
 |
5.99% | 5.99% | 5.39% | 5.59% | 6.39% | 5.65% |
 |
5.59% | 5.49% | 5.39% | 5.59% | 5.75% | 5.79% |
 |
5.29% | 5.29% | 5.29% | 5.29% | 5.29% | |
| SBS Bank | 5.59% | 5.74% | 5.19% | 5.49% | 4.99%* | |
 |
5.70% | 5.80% | 5.35% | 5.60% | 6.40% | 5.85% |
* Members only, otherwise 5.79%
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Mortgage choices involve making a significant financial decision so it often pays to get professional advice. An AMP360 mortgage broker can be contacted by following this link »
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