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Another big bank cuts home loan interest rates

Another big bank cuts home loan interest rates

1News2 days ago

Kiwibank is the latest bank to cut home loan interest rates.
It has cut its one-year special fixed rate to 4.89%, its two-year to 4.95% and its three and six-month rates to 5.29%.
It is also cutting a number of its term deposit rates by between 10 basis points and 15 basis points.
The official cash rate has fallen from a peak of 5.5% to 3.25%.
But a warier tone in the most recent update has raised questions about how much further the rate might fall. The decision went to a vote, and one member of the monetary policy committee was not in favour of a cut.
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That prompted swap rates to pick up a bit, although they have started to drift down again since.
David Cunningham, chief executive of mortgage advice firm Squirrel, said the main retail interest rate movements now would be driven by competition between the banks.
"Pre-OCR, the two-year swap was 3.12%. It bounced a bit and has drifted down, but is still slightly higher than a month ago.
Kiwibank. (Source: Supplied)
"I'd say that until we get a decisive move in wholesale rates below 3%, any fixed rate moves by banks will be at the margin as banks jostle for positioning.
"Maybe we'll see 4.75% one- or two-year rates, but a break towards 4.5% would need another OCR cut and signals of more to come. That would be three to six months away, if it did happen.
"Long story short, fixed rates are likely to hover around existing levels for a wee while."
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Last week, ANZ on Tuesday cut its 18-month fixed rate special by 10 basis points to 4.89%. The six-month rate dropped by 20 to 5.29%.
Then on Wednesday morning, ASB cut a range of its fixed home loan rates by up to 20 basis points. It was the bank's seventh fixed-rate mortgage drop of 2025.
Its six-month rate drops by 14 basis points to 5.45%, its one-year by four basis points to 4.95%, its 18-month rate by 10 basis points to 4.89%, its two-year by four basis points to 4.95% and its three-year by 20 basis points to 5.15%.
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