Focus Live: In a surprise move earlier today the central bank cut New Zealand's official cash rate (OCR) to 0.25 per cent - an all-time low – will be in place for the next 12 months.
Kiwibank has followed ANZ Bank in slashing its one-year fixed home loan rate to a record low.
Home buyers with at least 20 per cent equity will be able to secure the new 3.09 per cent one year special deals beginning next Monday.
"The one-year fixed term will be thelowest rate Kiwibank has ever offered. It demonstrates how we are supporting our lending customers in uncertain times, while remaining mindful of our deposit customers," the bank said.
A second New Zealand bank has dropped home loan rates to record lows. Photo / 123rf
It comes a day after ANZ Bank cut its fixed home loan rates to what it says were the lowest ever offered by a major Kiwi bank.
It now offered a one-year fixed rate special of 3.05 per cent and two-year fixed rate of 3.35 per cent.
"These new rates will provide some relief and support for customers during a difficult and uncertain time," said, Ben Kelleher, managing director retail and business banking for ANZ NZ.
The banks standard one-and-two year home loan rates would also drop, while term deposits had been reduced 0.25 per cent across the board - except for 30 days.
Like ANZ, Kiwibank had now also cut the returns customers would get from term deposits.
Sixty-day to 150-day term deposit rates would decrease by 0.25 per cent, while 200 day and 9-month rates would decrease by 0.15 per cent and 1 year to 5 year rates drop to 0.1 per cent.
