Kiwibank cuts one-year mortgage rate

By Ben Chapman-Smith

Kiwibank says its new six-month interest rate is the lowest in its 11-year history. Photo / NZH
Kiwibank says its new six-month interest rate is the lowest in its 11-year history. Photo / NZH

Kiwibank has today reduced its one-year home loan rate by 26 basis points and withdrawn a six-month special promotion which was its lowest ever rate.

The bank cut its one-year fixed-term rate from 5.25 per cent to 4.99 per cent.

Chief executive Paul Brock said given the competitive interest rate market it was "great to be able to continue to offer a headline rate below five per cent".

He said there were no special conditions for the rate such as high deposit requirements.

The one-year term would give customers some certainty as they watched and waited to see what would happen to rates in the longer term, he said.

In February, Kiwibank launched a six-month fixed home loan rate of 4.79 per cent, the bank's lowest rate in its 11-year history.

It was being offered as a "limited time special" and the bank today said the promotion had now ended.

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on red akl_a5 at 01 Aug 2014 12:05:48 Processing Time: 234ms