Kiwibank has dropped its two-year fixed home loan rate to 2.49 percent, an offer that is significantly lower than others in market.
Kiwibank Chief Executive Steve Jurkovich said in this rising rate environment the bank was providing certainty to its customers.
Kiwibank’s variable rate is also changing from 3.4 to 3.75 percent which still leaves it well below all major competitors.
At the time of the flexible rate reset in June 2020 Jurkovich said the move would result in interest savings of $20 million for more than 35,000 thousand Kiwibank home loan and business banking customers. This move was not matched by its much larger competitors.
Today he confirmed customers with a flexible rate on a $400,000 home loan would have saved $4,000 in interest over the past year.
“We challenged the market by reducing the pricing gap between fixed and floating rates giving our customers greater flexibility, choice and savings. In a time of uncertainty, we wanted to provide Kiwi an opportunity to pay back their loans faster, save, or buy local and support our economy.
“I’m proud that as a challenger we are providing Kiwi with a real alternative to the Australian-owned banks as well as supporting the growth and progress of all New Zealanders.
“We will continue to pursue our goal to lead the New Zealand financial services industry by being a better banking alternative that’s committed to being fair and easy for Kiwi, the businesses they own, and for future generations,” Jurkovich concluded.
Rate changes are effective from Monday 19 July 2021.