Kiwibank to cut floating mortgage rates by between 20 basis points and 25 basis points, topping ANZ, and Westpac cuts

Kiwibank is cutting its floating mortgage rates by between 20 and 25 basis points following Thursday morning’s 25 basis points Official Cash Rate cut by the Reserve Bank.

The state owned bank says it’s dropping its home loan variable rate by 20 basis points to 5.25%, its offset rate by 25 basis points to 5.25%, and its revolving home loan rate by 20 basis points to 5.30%.

“The changes support customers looking for flexibility with their lending and are the lowest variable rates Kiwibank has offered since its launch in 2002,’ Kiwibank says.

The cuts are effective from Monday August 15, for new customers and Monday August 29 for existing customers.

Kiwibank’s press release made no mention of changes to term deposit rates.

It’s the third bank to react to the Reserve Bank move. Earlier ANZ said it would cut its floating home loan rates by just 5 basis points to 5.59%, and floating rates for commercial, agri and business loans by 15 basis points. ANZ also said it would increase rates for “some term deposits” by up to 30 basis points to 3.60%. Westpac was the second bank to move, saying it’s cutting its floating mortgage rate by 10 basis points to 5.65%, with the reduction applying to its choices floating, choices everyday and choices offset rates. Westpac’s also introducing a “special” six month term deposit rate of 3.50%, an increase of 50 basis points on its existing six month term deposit rate.