Kiwibank joined other major banks in announcing a floating mortgage rate cut, passing on the full 25 basis points Official Cash Rate reduction announced by the Reserve Bank.
Its changes take effect on Monday, December 14 for new customers, and on December 28 for existing customers.
It was the third bank to announce home loan rate reductions, following ANZ and Westpac. See here for our earlier article on those changes.
However, although ANZ passed on the full 25 bps cut, Westpac is only passing on 15 of the 25 bps reduction to its clients on its main floating rate products.
At the same time, it's knocked 15 basis points off its 2 Year Special fixed rate, taking it down to 4.24%, which is now the lowest two year rate offered by any bank.
Westpac's rate changes are effective for new customers on December 11, and existing customers on January 1.
ANZ has cut its floating home loan interest rates by 25 basis points to 5.74%, and its flexible home loan rate, also by 25 basis points, to 5.85%. The ANZ floating rate is now the lowest floating rate of any bank.
The new rates kick in for new ANZ floating rate home loan customers from December 14, but not until December 29 for existing floating rate and all flexible home loan customers.
BNZ was the fourth bank to announce cuts to its floating mortgage rates. It's cut its Standard rate by 20 basis points to 5.79%, its TotalMoney rate by 10 basis points to 5.79%, and its Rapid Repay rate by 14 basis points to 5.85%.
Rate changes will come into effect on December 14 for new BNZ customers and December 28 for existing customers.
The Co-operative Bank also announced a 25 basis points cut to its floating mortgage rate to 5.70%, effective for new loans from December 11.
And late on Thursday ASB said it was cutting its variable and Orbit home loan rates by 25 basis points to 5.75% from 6.00%. The changes are effective Wednesday, December 16 for new customers and Wednesday, December 23 for existing customers.
See all banks' carded, or advertised, home loan interest rates here.
The new floating mortgage rates now compare across all banks as follows:
| below 80% LVR | Floating | 1 yr | 18mth | 2 yrs | 3 yrs | 5 yrs |
| % | % | % | % | % | ||
 |
5.74 | 4.35 | 4.95 | 4.49 | 5.10 | 5.35 |
 |
5.75 | 4.39 | 4.49 | 4.49 | 4.49 | 5.09 |
 |
5.79 | 4.35 | 5.09 | 4.39 | 5.19 | 5.35 |
 |
5.65 | 4.49 | 4.49 | 4.85 | 5.35 | |
 |
5.85 | 4.39 | 4.95 | 4.24 | 4.65 | 5.35 |
 |
5.70 | 4.39 | 4.49 | 4.49 | 4.75 | 4.99 |
 |
6.10 | 4.25 | 4.49 | 4.99 | 4.99 | |
 |
5.89 | 3.99 | 4.69 | 4.49 | 4.79 | 5.29 |
 |
5.99 | 4.35 | 4.69 | 4.39 | 4.79 | 5.35 |
In addition, BNZ has a fixed seven year rate of 5.75%, while TSB Bank offers a fixed ten year rate also at 5.75%.
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