Kiwibank has dropped its two-year fixed home loan rate to 2.49 percent, an offer that is significantly lower than those from its rivals.
The bank's variable rate is changing from 3.4 to 3.75 per cent, which still leaves it well below all major competitors.
KiwiBank's move comes as ANZ, BNZ and Westpac joined ASB in increasing their interest rates across the board.
The increases, which apply to new loans, are between 0.1 and nearly 0.5 percentage points.
Kiwibank chief executive Steve Jurkovich said at the time of the flexible rate reset in June 2020 the move would result in interest savings of $20 million for more than 35,000 thousand Kiwibank home loan and business banking customers. This move was not matched by its much larger competitors.
Today he confirmed customers with a flexible rate on a $400,000 home loan would have saved $4,000 in interest over the past year.
“We challenged the market by reducing the pricing gap between fixed and floating rates giving our customers greater flexibility, choice and savings. In a time of uncertainty, we wanted to provide Kiwis an opportunity to pay back their loans faster, save, or buy local and support our economy,” said Jurkovich.
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