Kiwibank is cutting its floating mortgage rates by between 20 and 25 basis points following Thursday morning's 25 basis points Official Cash Rate cut by the Reserve Bank.
The state owned bank says it's dropping its home loan variable rate by 20 basis points to 5.25%, its offset rate by 25 basis points to 5.25%, and its revolving home loan rate by 20 basis points to 5.30%.
"The changes support customers looking for flexibility with their lending and are the lowest variable rates Kiwibank has offered since its launch in 2002,' Kiwibank says.
The cuts are effective from Monday August 15, for new customers and Monday August 29 for existing customers.
Kiwibank's press release made no mention of changes to term deposit rates.
It's the third bank to react to the Reserve Bank move. Earlier ANZ said it would cut its floating home loan rates by just 5 basis points to 5.59%, and floating rates for commercial, agri and business loans by 15 basis points. ANZ also said it would increase rates for "some term deposits" by up to 30 basis points to 3.60%. Westpac was the second bank to move, saying it's cutting its floating mortgage rate by 10 basis points to 5.65%, with the reduction applying to its choices floating, choices everyday and choices offset rates. Westpac's also introducing a "special" six month term deposit rate of 3.50%, an increase of 50 basis points on its existing six month term deposit rate.
See all banks' carded, or advertised, home loan rates here.
| Floating | Prior rate | New rate | Change | effective from |
| % | % | % | for existing clients | |
 |
5.64 | 5.59 | -0.05 | 29 August 2016 |
 |
5.65 | 5.55 | -0.10 | 24 August 2016 |
 |
5.69 | 5.64 | -0.05 | 29 August 2016 |
 |
5.45 | 5.25 | -0.20 | 29 August 2016 |
 |
5.75 | 5.65 | -0.10 | 31 August 2016 |
 |
5.45 | |||
 |
5.75 | |||
| ICBC | 5.60 | |||
 |
5.69 | 5.54 | -0.15 | 18 Sept 2016 |
 |
5.54 |
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11 Comments
BNZ offering 3.99% for two year fixed mortgage - negotiate, threaten to move bank etc and a better rate will be offered - should be possible to negotiate into the 3.75% to 3.85% area soon. What an arse that Hisco is suggesting paying off more debt but at same time pocketing most of the OCR cut so the ANZ make even more billions! Goodbye ANZ - am off to whatever bank offers the full OCR cut! Banks just playing games with their customers
You must understand that what ANZ is doing IS socially responsible and for the greater good. They have the best call centre and have the most pleasant people to deal with. They put on higher deposit rates despite the fact that it'll lower their profit, that's very ethical of them, despite the fact that OCR got cut. The blue bank clearly beats the greedy green bank. GOOO ANZ
'Bank' and 'socially responsible' in one phrase may only have 'not really' in-between. They may have best people working in their call centres, but all they care is a profit for a shareholders. The more money they get, the more leverage and new lending they can afford.. and All banks are greedy regardless of colour..
Funny - I read it the other way.
ANZ are saying we are stuffed. We have lent out way to much and need to recoup some actual money from depositors as all our lending is not being paid back. I would be avoiding them like the plague - particularly given some of the news coming out of Aus about them.
Yes very much agree, you really need to negotiate on rates especially if you have a good chunk of deposit that allows you a healthy LVR rate of 20%. Don't just accept any rate the bank are prepared to offer. Sometimes it's best to do an initial negotiation on mortgage rates, let then know that you're shopping around. Generally they will phone you and try to offer a better rate. Or they'll offer other sweeteners, such as dropping fees etc..
Truth is every main bank will match another banks rate if asked, they just dont advertise the fact because some people simply don't ask and they can benefit from that.
The other reason they keep advertised rates higher is they don't need further growth as they are within their target threshold and meeting targets.
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