Mortgage rates keep falling as BNZ, Kiwibank jump aboard

BNZ is dropping its fixed mortgage rates by between 21 and 90 basis points and Kiwibank has joined in, 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.

The rate on the BNZ's GlobalPlus product for two, three and four year mortgages drops to 7.09 per cent. The rates are effective from January 16.

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: 15 Jan 2009

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