KiwiBank is slashing its variable lending rates, including floating mortgage and revolving business loans, by one per cent.
It comes after banks around the country have dropped their fixed rates due to cuts to the Official Cash Rate (OCR).
KiwiBank's new variable (floating) home loan rate is 3.4 per cent, bringing it in line with its current standard one-year-fixed interest rate.
The revolving home loan is now 3.45 per cent and offset mortgage drops to 3.4 per cent.
Someone with a $400,000 loan would be $100 a fortnight better off with these changes, chief executive Steve Jurkovich says.
"Of course, many customers choose a mix of variable and fixed loans, and as a result of today’s reset, they could enjoy competitive rates and flexibility in an unprecedented way," he said in a statement today.
"The new variable rates will also be a good option for first home buyers who don’t have 20 per cent equity."
It’s good news for borrowers with rates at record lows. (Source: Other)
Meanwhile for businesses, the housing-secured variable loan is now 3.9 per cent, the variable loan at 5.5 per cent, revolving at 6.75 per cent and overdraft at 7.5 per cent.
The OCR was dropped to 0.25 per cent earlier this year, after the Covid-19 outbreak put pressure on markets globally.
It'll remain at 0.25 per cent for at least 12 months, the Reserve Bank said at the time.
All of New Zealand's major banks passed on that cut, dropping their variable rates by the full 0.75 basis points.
SHARE ME