Mortgage rate cut to 2004 level
15/01/2009
Kiwibank has cut its variable (floating) home loan rate to 6.99%, the lowest rate for variable loans since May 2004. It has also cut medium and long term fixed rates.Kiwibank Chief Executive Sam Knowles said Kiwibank has been aggressively cutting rates since October last year. "In the last 10 weeks we have sliced 2.71% off our variable rate and Kiwibank is now positioned significantly below the other main banks. This latest cut is 0.46%."
Mr Knowles said Kiwibank was attracting significant numbers of home loan customers who had fixed terms loans with other banks coming due for renewal and were switching to Kiwibank’s variable rate while they watched and waited to see whether there would be further falls in interest rates.
Mr Knowles said the cuts in interest rates had been the biggest and quickest for a large number of years and will provide significant savings for home loan customers at a time when there are major concerns about personal income and expenditure.
Kiwibank has cut its fixed rates for two, three, four and five years. The two year rate is down 0.19% to 7.00% p.a.; three year down 0.30% to 7.10% and four and five year down 0.60% to 7.10% p.a.
The new variable rate takes effect immediately for new customers and in two weeks for existing customers. The fixed rate cuts are effective immediately from Friday 16 January.
For further information:
Bruce Thompson
Communications Manager
(04) 460 6831