29 Jan 2009

Kiwibank cuts mortgage rate

12:01 pm on 29 January 2009

Kiwibank is the first bank to respond to a cut in the Official Cash Rate by the Reserve Bank of New Zealand.

The State-owned bank cut all home loan rates on Thursday.

The bank's lowest rate is a one-year fixed term which has been reduced to 5.69% per annum.

Other cuts include a two year fixed term being reduced by 1 percentage point to 5.99% and a variable rate by half a percentage point to 6.49%.

Kiwibank has already cut its rates twice this year.

The Reserve Bank earlier lowered the OCR from 5% to 3.5% - the lowest rate since 1999.

ANZ-National, ASB and the BNZ say their rates are under review.