Mortgage rates on their way down - Kiwibank joins in

Mortgage rates are on the way down today, with two banks - Westpac and Kiwibank, cutting rates in anticipation of another Official Cash Rate cut.

Kiwibank says it has today cut its variable home loan rate to 7.95 per cent - what is says is "significantly less than the big Australian-owned banks."

Kiwibank chief executive Sam Knowles said it was clear there would be a substantial cut to the Official Cash Rate in early December and the bank "didn't want to sit and wait".

"We take pride in being fast to cut home loan rates and slow to increase them. Today we are cutting our variable and all shorter term rates."

The new variable rate is effective immediately for new customers and in two weeks for existing customers. The new fixed rates take effect immediately.

Today's Kiwibank move comes after Westpac this morning cut its floating and most fixed interest rates for home loans by 0.75 per cent. Its floating rate is at 8.7 per cent.

To read the full NZ Herald article click here

Posted: 20 Nov 2008

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