Kiwibank cuts six-month home loan rate

RICHARD MEADOWS
Last updated 15:24 14/02/2013

Related Links

Mortgage rates cut but with strings

Relevant offers

Money

Rich listers favour property investment, according to NBR Rich List Budget Buster: All that glitters is not gold Sheldon Slabbert: Is inflation really dead? Givealittle 5 per cent fee may cause stress for campaigners Auckland house sale prices leave official valuations in the dust What does bridal shop failure mean for customers who have paid deposits? Recruitment consultant ripped off foreign workers in Christchurch Think you're bored at work? Try these jobs Wealth is only key to happiness if you know how to spend it Students told to think about what they get back from their uni fee investment

Kiwibank has launched the lowest mortgage rate in its 11-year history, providing more signs that the highly competitive mortgage market is heating up again.

The banking minnow is offering a six-month home loan of 4.79 per cent, slashing almost half a per cent off its existing advertised rate.

The next closest contenders in the shortest fixed-term category are HBS and SBS at 5.10 per cent, with other major lenders priced at 5.25 per cent or higher.

While the state-owned bank has previously instigated several rounds of rate cutting, this time it followed the lead of Westpac and ASB.

On Monday, Westpac introduced a one-year fixed rate of 4.89 per cent, three years at 5.39 per cent and five years at 5.75 per cent., all of which lead the market.

However, they are conditional on at least 20 per cent equity and minimum new borrowing of $100,000.

Kiwibank said there were no such conditions attached to its latest deal, but promoted the rate as a "limited time special", indicating that it may not be available for long.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content