Kiwibank Cuts Fixed Home Loan Rates Ahead of OCR Decision
Kiwibank has reduced several fixed home loan rates, joining other major lenders ahead of the Reserve Bank’s upcoming interest rate review. The move could bring relief to borrowers facing higher repayment costs.
Lower Rates Across Terms
The state-owned bank dropped its one-year special rate to 4.49 %, while the six-month term sits at 4.85 %. Two- and three-year specials are now 4.69 % and 4.99 %.
Standard fixed rates were also lowered — six-month at 5.75 %, one-year 5.39 %, and two-year 5.59 %. The reduced specials apply to borrowers with at least 20 % equity or those eligible under Kāinga Ora or Kāinga Whenua schemes.
Market Anticipates OCR Move
The changes follow similar cuts from ASB, BNZ, ANZ and Westpac, as banks prepare for a possible Official Cash Rate (OCR) reduction. Economists say easing rates could support mortgage affordability and encourage new lending activity.
Impact for Borrowers
Lower fixed rates may help homeowners save on repayments when refixing, though checking break fees and conditions remains essential. Advisers suggest comparing multiple offers before switching or renewing loans.
What’s Next
The Reserve Bank’s rate decision later this week could prompt further mortgage adjustments nationwide. Borrowers can view updated rate tables at Kiwibank.co.nz or follow Find New Zealand for ongoing finance updates.
