Kiwibank has cut its one to five year home loan rates by between 34 and 60 basis points, dropping its one-year rate to a record low 2.65%.
The rate changes are effective from Monday, and available to new and existing customers with 20% equity.
Kiwibank has dropped its one year rate to 2.65% from 2.99%, its two year rate to 2.79% from 3.39%, its three year rate to 3.25% from 3.65%, its four year rate to 3.45% from 3.99%, and its five year rate to 3.55% from 4.09%.
The 2.65% one year rate goes under the 2.69% two year rate announced by ASB on Friday morning, making it the lowest carded, or advertised, mortgage rate in New Zealand ever.
Kiwibank head of borrowing and deposits Chris Greig says the bank "will continue to review our rates to ensure that we are competitive, and both our deposit and lending customers are getting a fair deal."
BNZ also made a range of mortgage rate cuts on Friday. The series of bank mortgage rate cuts come after the Reserve Bank, in its Monetary Policy Statement of May 13, said it wanted to see them.
"So far, we have not observed the pass through of wholesale interest rate reductions to retail interest rates to the extent we might expect in normal times," the Reserve Bank said.
One useful way to make sense of these new lower rates is to use our full-function mortgage calculators.
And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options.
Here is the updated snapshot of the advertised lowest fixed-term rates on offer from the key retail banks at this time.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at May 22, 2020 | % | % | % | % | % | % | % |
| ANZ | 3.65 | 2.79 | 3.05 | 2.95 | 3.35 | 4.45 | 4.55 |
 |
3.55 | 2.85 | 3.05 | 2.69 | 3.35 | 3.45 | 3.55 |
 |
4.79 | 2.79
 |
2.99
|
2.99
|
2.99
|
2.99
|
2.99
|
 |
4.29 | 2.65
|
2.79
|
3.25
|
3.45
|
3.55
|
|
 |
4.79 | 2.79 | 4.25 | 2.79 | 3.39 | 3.49 | 3.59 |
| Bank of China | 3.89 | 2.79 | 2.89 | 2.89 | 3.19 | 3.79 | 3.89 |
| China Construction Bank | 4.70 | 2.80 | 2.85 | 3.19 | 3.30 | 3.45 | |
| Co-operative Bank | 3.09 | 3.09 | 3.35 | 3.35 | 3.69 | 3.79 | 3.89 |
| Heartland Bank | 2.89 | 2.97 | 3.39 | ||||
| HSBC | 3.49 | 2.80 | 2.85 | 2.89 | 3.50 | 3.60 | 3.70 |
| ICBC | 4.29 | 3.18 | 3.18 | 3.18 | 3.20 | 3.99 | 3.99 |
 |
3.89 | 2.99 | 3.05 | 3.05 | 3.69 | 3.79 | 3.89 |
 |
3.39 | 2.79
|
2.99 | 2.99 | 3.39 | 3.79 | 3.89 |
In addition to the above table, BNZ has a unique fixed seven year rate of 5.20%.
Fixed mortgage rates
Select chart tabs
41 Comments
"Completely independent" ; ) Australian Corelogics Hedonic Price Index has suddenly halted due to there not being enough data to give an accurate price of housing. Strange that isn't it. Surely its got nothing to do with prices dropping off a cliff...... surely?
"generally cannot use them against your other income"
https://www.ird.govt.nz/property/renting-out-residential-property/resid…
Frazz, no negative gearing hasn’t been scrapped!
The right to write off losses against other income yearly has been scrapped, but you can accumulate losses and then the losses are offset once the property makes a profit.
In some cases this will never happen if the loan is large and the rental income never covers the expenses!,!!
Reality is that the housing market is going to be so interesting and the opportunities to become financially independent has now been opened up to anyone that wants it bad enough!
Be in boots and all as with rates at 2.99% for 5 years why wouldn’t you??????
The majority of landlords leverage all the rental properties to 100% mortgage, interest only, and claim the interest cost back from the IRD.
That interest refund is then used to pay down the landlord's own mortgage.
Landlord then sells their "family home" and moves into a bigger house.
Rinse and repeat.
2.99% for 5 years…
5 years is a long, long time in uncertain times. As many know, for the last 4-5 years I have continuously been advocating to fix for 1 year, I might finally be changing tack, 2.99% fixed for 5 years… sure gives certainty in uncertain times at a very, very low rate (only 0.2% premium over 1 year)
Must admit, never thought we will see that kind of rate in NZ. 2.99% fixed for 5 years is pretty tempting but still doesnt cover interest cost after rent in Auckland. Its a good rate for owner occupiers. I also never fix past 1 year normally as circumstances change so quickly as we have seen with the current pandemic.
Usually HSBC leads the market with rates. lets see what they do next.
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.