| About Us | Advertise | Contact Us | Terms & Conditions | RSS Feeds | Other Sites: landlords.co.nz | sharechat.co.nz |
|
Join our newsletter
Mortgage Rates Newsletter |
|
|
Kiwibank slashes two-year rate to provide certaintyKiwibank has cut 31 basis points off its two-year fixed home loan rate, reducing it from 7.30% which is the median for all banks to 6.99%.Thursday, July 1st 2010, 11:03AMThis makes its new rate 20 basis points lower than the closest bank which is TSB. HSBC has an even lower rate of 6.74%, but to be eligible customers need to have minimum combined home loans of $500,000. Kiwibank chief executive Sam Knowles says the rate cut is to give some certainty to customers who are concerned about interest rate volatility. "This is another option for home loan customers looking to lock in very competitive rates and to spread their lending risk. "Just last week we introduced a 12-month cap option on our floating rate and we are now giving some longer term security for customers." The cap option allows customers on a floating rate to ensure the rate does not increase above 6.50% for 12 months and costs $250. Kiwibank's present floating rate is 5.90%.
Comments from our readersOn 1 July 2010 at 11:45 am Tania said:
Great work Kiwibank. For those of us struggling to sell a property in the current market this gives potential buyers somewhere to go for finance with a sharp rate plus all the other benefits that go with Banking with a Kiwi owned bank.
I certainly know where I would point any potential buyers for my house. On 1 July 2010 at 2:12 pm BC said:
I wish I wasn't still stuck on a fixed rate from a few years ago. Kiwibank charge massive break fees if your situation changes in the future so be careful about fixing for 2 years. On 6 July 2010 at 1:38 pm Tona said:
Yeah but i guess thats what fixing is all about, though. That said, hope the fixed rates keep on falling! :) Add your comment: |
Latest News
SBS takes margin hit to keep mortgage rates down Insider Paul Brock to replace Knowles at Kiwibank NZIER: Pause in OCR till March 2011 |
Compare Mortgage Rates
Find a Mortgage Broker
Latest Trends
Fixed rates step into spotlight
The gap between floating rates and fixed rates is closing in. This is because floating rates have been increasing in synch with the last two Official Cash Rate (OCR) increases of 25 basis points, making an increase of 0.50% since June. At the same time there has also been a fall in two to five year fixed rates due to the decline in wholesale and swap rates. Whereas six months ago the "step up" between floating and two-years fixed was around 1.60%, at the moment it stands at around 0.60%. This means at the moment you would only need to see a small rise in rates for the fixing strategy to be the better option, especially for terms between one and two years. MORE » |
Disclaimer: Every possible effort has been made to keep the information in the rates tables as accurate as possible, however, neither the publishers of Mortgage Rates nor anyone engaged to compile these tables accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details directly with the provider concerned.
© Copyright 2010 Tarawera Publishing Limited. All Rights Reserved.
