Kiwibank quick to move after OCR cut announced

08/05/2019

Kiwibank is decreasing interest rates on its floating home loan products after the official cash rate was cut today.

“This good news for customers with variable home loan products. We are making these changes so that our home loan customers get the benefit of market changes,” says Chief Marketing Officer Mark Wilkshire.

Kiwibank’s floating home loan rate has decreased by 15bps (see table). Kiwibank’s funding costs are primarily driven by customer deposits. The New Zealand owned bank’s variable rate deposit products, Notice Saver and Online Call, have also decreased by 15 basis points.

“This announcement is an example of Kiwibank leading the market and putting customers first. We are constantly reviewing our rates to ensure that we are competitive, and both our deposit and lending customers are getting a fair deal,” Mr Wilkshire said.

Product

Current rate p.a.

New rate p.a.

Change

Kiwibank Variable

5.80%

5.65%

-0.15%

Kiwibank Revolving

5.85%

5.70%

-0.15%

Kiwibank Offset

5.80%

5.65%

-0.15%

Deposits

  • Decrease 90 Day and 32 Day Notice Savers by 15bps to 3.10% and 2.10%
  • Decrease online call and business online call by 15bps to base rate. No change to bonus rate.
  • Decrease Fast Forward saver top tier by 5bps. No change to bonus rate.
  • Decrease Front Runner and Business Performer top tier rates by 15bps.
  • Decrease Backup Saver by 5bps
  • Decrease First saver by 15bps
  • Decrease AMP S41 account earned interest rate by 90bps.

Effective dates

  • New customers: 13 May 2019
  • Existing customers: 27 May 2019
  • Deposits: 13 May 2019

Media enquiries contact: Kara Tait, Kiwibank External Communications Manager - 027 475 3521