Kiwibank has cut its variable home loan mortgage rate again, saying it is getting in before an expected further cut by the Reserve Bank next month.
The bank's variable loan rate has almost halved in the past five months, falling from a high of 10.2 percent to a
historic low today of 5.99 percent.
Chief Executive Sam Knowles describes the current interest rate market as extraordinary. He says Kiwibank is anticipating the Official Cash Rate will come down again next month.
Knowles says they are leading the charge during these tough economic times to help customers. He says they are twice as busy as they would have been if they had not taken the approach.
Westpac also moved today to cut its variable rate to 6.49 percent from 6.89 percent.
It is also cutting its six-month fixed mortgage rate to 5.79 percent from 5.99 percent.
"The market is starting to price in further downward official cash rate moves by the Reserve Bank," said Westpac New Zealand acting chief executive Bruce McLachlan.
"Many uncertainties remain, but we want to be proactive, particularly as many of our home loan customers are looking closely at short term rates in the current environment," he said.
- NEWSTALK ZB/NZPA
