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Kiwibank Slashes Home Loan Interest Rates

Media release
5 June 2003

Kiwibank Slashes Home Loan Interest Rates

Kiwibank reacted immediately this morning to the reduction in the official cash rate by the Reserve Bank, making significant cuts to its variable and fixed home loan interest rates.

The variable and revolving rates, already well below its major competitors, have been cut to 6.65 per cent per annum – a reduction of 0.30 per cent. The one year fixed rate has also been cut by 0.30 per cent to 6.10 per cent. Two year fixed rate home loans have been trimmed to 6.20 per cent; three year to 6.45 per cent; four year 6.60 per cent and five year 6.70 per cent.

The reduced rates are effective from Saturday, 7 June for new customers. Variable and revolving rate reduction for existing customers will be effective from 26 June.

Kiwibank Chief Executive Sam Knowles said the bank was determined to provide a fair deal for homeowners. “The margin of our variable rate compared with the other main banks is significant. A customer with an average home loan of around $125,000 could reasonably save more than a thousand dollars a year on current rates.” Kiwibank compares its rates with the other major banks operating nationwide branch networks.

Kiwibank guarantees to better overall costs of equivalent home loan products from the competitors after the first six years. Kiwibank does not charge a Home Loan application fee.

Mr Knowles said Kiwibank interest rates have fallen to match the decline in wholesale interest rates, which have a significant impact on prevailing home loan rates.

ENDS

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