Kiwibank has reduced its one-year fixed-term home-loan interest rate to a new record low – dropping from 3.55 per cent to 3.39 per cent.
Kiwibank's offer, which is effective from Monday, will be available for a limited time and requires a minimum 20 per cent equity.
"Implications from the 'no rate change' decision were that wholesale rates increased. It's likely we'll be the outlier reducing our one-year home-loan rate but that is a position we're comfortable to hold," Chris Greig, Kiwibank general manager for borrowing and savings, said.
"We're keen to see a continuation in the momentum we've had in growth over the past year as more New Zealanders choose to bring their banking to Kiwibank."
Kiwibank is also currently offering $3,000 cash back for those that have at least $250,000 in new lending and make the switch to Kiwibank.