Kiwibank has announced two reductions in their fixed home loan rates.
Their six month fixed rate has been cut -10 bps to 4.75%, and their three year fixed rate is -26 bps lower at 4.49%.
Neither change is market-leading.
Both changes will be in effect on Monday, June 13, 2016.
Kiwibank does still have one market-leading position with its two year ‘special’ of 4.15%. (This is the rate that until May 27 was at 3.99%.)
Kiwibank’s economists are forecasting one more -25 bps cut to the OCR in August.
Following today’s RBNZ OCR review, swap rates rose and flattened, although they have been fairly rangebound since the March OCR cut. What has happened is that the flattening trend got stronger today.
Today wholesale rates are less than +20 bps in the term range of 1 to 5 years, and only just over +50 bps for the term range 2 to 10 years. This flat trend is not yet reflected in home loan rate offers. But it is something likely to evolve over the next month or so.
The other trend to look out for is banks changing their lending criteria, especially for investors, and even more especially for borrowers who rely on overseas income in their loan applications. Both Westpac and ANZ have made separate moves along these lines.
|below 80% LVR||6 mths||1 yr||18mth||2 yrs||3 yrs||5 yrs|
In addition, BNZ has a fixed seven year rate of 5.55%, while TSB Bank offers a fixed ten year rate at 5.75%.