Kiwibank 'kick starts' 2011 with mortgage rate cut

In the first mortgage rate cut of 2011, government owned Kiwibank has dropped its one-year mortgage rate to 6.15 per cent from 6.45 per cent in what it describes as a "limited time offer" likely to run until the end of January.

The cut means Kiwibank now advertises the lowest one year rate from any bank, with HSBC the next lowest with its premier rate at 6.24 per cent. ANZ, National Bank, ASB, BNZ and Westpac all advertise one-year rates of 6.45 per cent.

Kiwibank's move is the second change to mortgage rates by a bank in 2011 following HSBC lifting its one-year premier rate to 6.24 per cent from 5.99 per cent and its six month premier rate to 5.74 per cent from 5.49 per cent.

Under the terms of HSBC's premier offering, customers' must have mortgages worth NZ$500,000 or savings of NZ$100,000 to qualify for a loan.

Kiwibank spokesman Bruce Thompson said the 30 basis point cut to the bank's one-year home loan rate was being promoted as a special - meaning it would only be in place for a limited time.

To read the full NZ Herald article, click here

Posted: 18 Jan 2011

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