Kiwibank is the latest bank to announce a floating mortgage rate cut, passing on the full -25 basis points Official Cash Rate reduction that was announced by the Reserve Bank.
Its changes take effect on Monday, December 14 for new customers, and on December 28 for existing customers.
It is the third bank to announce home loan rate reductions, following ANZ and Westpac. See here for our earlier article on those changes.
However, although ANZ passed on the full -25 bps cut, Westpac is only passing on -15 of the -25 bps reduction to its clients on its main floating rate products.
At the same time, it’s knocked -15 basis points off its 2 Year Special fixed rate, taking it down to 4.24%, which is now the lowest two year rate offered by any bank.
Westpac’s rate changes are effective for new customers on December 11, and existing customers on January 1.
ANZ has cut its floating home loan interest rates by -25 basis points to 5.74%, and its flexible home loan rate, also by 25 basis points, to 5.85%. The ANZ floating rate is now the lowest floating rate of any bank.
The new rates kick in for new ANZ floating rate home loan customers from December 14, but not until December 29 for existing floating rate and all flexible home loan customers.
BNZ is the fourth bank to cut its floating mortgage rates today. It’s cut its Standard rate by 20 basis points to 5.79%, its TotalMoney rate by 10 basis points to 5.79%, and its Rapid Repay rate by 14 basis points to 5.85%.
Rate changes will come into effect on December 14 for new BNZ customers and December 28 for existing customers.
The new floating mortgage rates now compare across all banks as follows:
|below 80% LVR||Floating||1 yr||18mth||2 yrs||3 yrs||5 yrs|
In addition, BNZ has a fixed seven year rate of 5.75%, while TSB Bank offers a fixed ten year rate also at 5.75%.