Kiwibank cuts its two-year loan rate
As the big four banks raised their home-loan rates this week, Kiwibank seized the marketing opportunity and will drop its two-year rate.
Kiwibank said yesterday its twoyear fixed home-loan rate would drop six basis points to 2.49 per cent per annum. However, it is raising its variable home-loan rate from 3.4 per cent to 3.75 per cent.
Chief executive Steve Jurkovich said in the rising rate environment it was providing certainty to customers.
“As a challenger we are providing Kiwis with a real alternative to the Australian-owned banks.”
In response to rising inflation, ASB was the first to blink this week, lifting its fixed one-year rate from 2.19 per cent to 2.55 per cent per annum. Its two-year rate also rose from 2.59 per cent to 2.95 per cent.
ANZ, BNZ and Westpac followed suit yesterday, announcing an end to
We are providing Kiwis with a real alternative to the Australian-owned banks.
Steve Jurkovich, Kiwibank
the downward trend in interest rates.
ANZ lifted its one-year rate by 31 basis points to 2.5 per cent, its twoyear rate by 31 basis points to 2.9 per cent and its three-year rate by 25 basis points to 3.24 per cent.
BNZ increased its one-year rate by
36 basis points to 2.55 per cent, its two-year rate by 40 basis points to
2.95 per cent and its three-year rate by
26 basis points to 3.25 per cent. Westpac’s one-year rate went up by 36 basis points to 2.55 per cent, its two-year rate by 30 basis points to
2.89 per cent and its three-year rate by 30 basis points to 3.29 per cent.
Other independents banks TSB, the Co-operative Bank, SBS and Heartland have not yet followed. Neither have the smaller New Zealand providers HSBC and Bank of China.
The lift from the major providers comes in the same week the release of inflation data showed the cost of household essentials climbed 3.3 per cent for the year so far — the biggest increase in 10 years.
As an example of what the changes mean, ASB’s 0.36 point shift in the two-year rate would equate to an extra $1824 a year ($152 a month) for a recent home buyer paying off an $800,000 mortgage over 30 years.