Kiwibank has advised it is introducing a new 3 year fixed rate mortgage Special on Monday, September 23, 2013.
The rate will be 5.99%, down from their standard 6.40%, but this Special rate only applies for customers with a minimum of 20% equity in their property.
At the same time, they are raising the rate on their 1 year mortgage term, to 5.25%, up 36 bps from 4.89%.
Kiwibank's discount for a new build in Christchurch is retained, giving 1% p.a. off their standard variable rate for a year from drawdown, and 0.25% p.a. off any of their fixed rate terms.
These changes come after ANZ also added a LVR targeted Special, and who also raised some other rates.
These adjustments position Kiwibank as per the table below which shows 'best carded rate' including special offers (which may have LVR restrictions).
Rate offers are changing with banks separating rates depending on whether client business can meet the new RBNZ 'speed limit' high LVR tests.
These changes come after a volatile few days on credit and currency markets which say the US Fed surprise markets by not tapering their bond purchase program, and NZ release better than expected GDP data for Q2.
Local wholesale markets reacted to the days events by bidding down swap rates by 4 bps for the 1 yr, and down 9 or 10 bps for the 2 through 5 year terms.
See all advertised mortgage rates here.
| 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs | |
 |
5.19% | 5.59% | 5.95% | 6.50% | 7.10% |
 |
5.40% | 5.65% | 5.70% | 6.40% | 6.99% |
| BNZ | 5.39% | 5.39% | 5.95% | 6.29% | 6.90% |
| Kiwibank | 5.25% | 5.75% | 5.99% | 6.90% | |
 |
4.94% | 5.75% | 5.95% | 6.50% | 7.10% |
| Co-op Bank | 4.94% | 5.50% | 6.20% | ||
| HSBC Premier | 4.75% | 5.65% | 6.35% | 6.99% | |
| SBS / HBS | 4.95% | 5.45% | 5.99% | 6.55% | |
 |
5.40% | 5.65% | 5.85% | 6.45% | 7.00% |
In addition to the table above, TSB has a 15 month 'special' rate of 5.15%.
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