Kiwibank has dropped some of its fixed home loan rates ahead of the official cash rate decision next week.
Effective today, the bank’s one-year special rate, for customers with a minimum 20% equity, dropped from 4.89% to 4.79%. It also dropped its six-month and two-year special rates from 5.29% and 4.95% to 5.09% and 4.89%, respectively.
The one-year and two-year offers match new rates from ANZ and BNZ, which dropped some fixed home loan rates earlier this week.
New standard rates – for those with less than 20% equity – for six-month, one-year, and two-year loans also went into effect today.
The six-month fixed loan dropped from 6.19% to 5.99%, the one-year fixed loan dropped from 5.79% to 5.69%, and the two-year fixed loan fell from 5.85% to 5.79%.
There were also changes to some of Kiwibank’s term deposit rates for terms between 90 days and two years.
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They fell 10 or 15 basis points.
Economist Cameron Bagrie told 1News yesterday that while the recent drops in interest rates were good for buyers, they were not good for savers.
“Banks are trimming rates on both sides of their balance sheet. Term deposit rates have been coming down and in line with mortgage rates. So there’s some winners out there and there’s some losers on the other side,” he said.
“We’ve seen green shoots, but green shoots sometimes turn brown, and there’s a lot of global uncertainty at the moment.”