Kiwibank and BNZ slash home loan rates

BNZ and Kiwibank have joined other banks in dropping their mortgage rates as two separate reports reveal the depth of the property price slump.

BNZ is dropping its fixed mortgage rates by between 21 and 90 basis points and Kiwibank is dropping both its fixed and floating rates.

Kiwibank's new floating, or variable, rate is 6.99 per cent. Kiwibank chief executive Sam Knowles said this was a cut of 46 basis points to the lowest rate for variable loans at Kiwibank since May 2004.

The new BNZ rate for two, three, four, five, six and seven-year standard fixed home loans is 6.99 per cent.

Kiwibank is cutting its two, three, four and five-year fixed rates. The new two-year rate is 7 per cent and three, four and five-year rate is 7.10 per cent.

Other banks have also dropped fixed mortgage rates this week and late last week.

To read the full NZ Herald story click here

Posted: 16 Jan 2009

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