Kiwibank cuts mortgage rates

NZ Post's banking subsidiary, Kiwibank, increased profit 27 per cent to $127 million in the year ended June 30, as revenue gained 17 per cent to $560 million. Photo / Richard Robinson

Kiwibank has moved to cut all its interest rates, a day after the Reserve Bank cut rates and signaled that more reductions were to come.

The state-owned bank cut its floating (variable) rate to 5.9 per cent yesterday. It is now offering six month rates at 5.19 per cent and its cheapest rate is 4.59 per cent for a two year term.

Other major banks have all moved to cut rates over the past week or so - pricing in the continued reductions in the Official Cash Rate expected from the Reserve Bank.

• ANZ yesterday lowered interest rates on its floating and flexible home loans, also by 0.25 per cent - bringing its floating home loans rates down to 5.99 per cent and flexible home loans rates down to 6.1 per cent.

ANZ's new rates for new ANZ Floating Rate Home Loan customers would take effect from Monday, September 14 and for all existing Floating Rate and all Flexible Home Loan customers from Monday, September 28.

• Westpac lowered its floating mortgage rate to 6 percent, which it said reflected to "competitive" home loan market.

• ASB Bank matched the 4.35 per cent special one-year rate the BNZ unveiled last week. It was the lowest home loan rate New Zealand has seen since the 1960s.

• BNZ cut 0.25pc on three floating home loan products - Standard Variable, Rapid Repay and Mortgage One.

See Video - Business editor Liam Dann and senior journalist Jamie Gray on the implications of yesterday's Reserve Bank move: