The race to sub 6% home loan rates won

www.goodreturns.co.nz

Friday 23rd January 2009

The race to get home loan rates below the 6.00% mark has been won by Kiwibank. As predicted here the banks would fight hard to get rates to the sub-6% mark.

Kiwibank was first after it made a 50 basis point cut to both its six-month and one-year to now offer the lowest one-year fixed rate of 5.99% which is the lowest on our table and the lowest rate in at least four years. (They, though, subject to a maximum LVR of 80%). Kiwibank also cut its fixed rates of two-years or more by 11 points.

However, late Friday BNZ went one better and launched a Classic floating rate at 5.95% and dropped its standard rate for terms of one and two years, to 5.99%.

Sovereign also moved its rates late Friday, indicating that ASB and Bank Direct will make changes imminently.

AMP Home Loans cut both its standard and priority floating rates by 71 basis points.

No8 Mortgages has cut its floating rate by 50 points and has cut all its rates of two-years and longer to a competitive 6.99%.

Last but by no means least, Global Home Loans has made huge reductions across the board, starting with a full one percent cut to its six-month and five-year rates, its three and four-year rates have been reduced by 90 points and a 80 and 75 points reduction has been made to its one and two-year rates respectively.

Click here to view our rates table in full and click here to graph comparisons.

Check and compare home loan rates here

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