CEO says the move affirms its position as a "challenger bank"
Kiwibank has dropped all of its variable lending rates by 1% (100bps), a move CEO Steve Jurkovich says will result in repayments savings of $20 million for more than 35,000 customers.
Jurkovich says this affirms Kiwibank’s position as a “challanger bank,” and the huge cut aims reduce the pricing gap between fixed and variable rates, which is currently considerable at most major banks. He says this change will also give customers more choice and flexibility, and will allow them to make savings and pay back their loans quicker.
“The founding vision of Kiwibank was to be a challenger, providing New Zealanders with a real alternative to the big Australian-owned banks and support the growth and progress of all New Zealanders,” Jurkovich said.
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“This reset demonstrates how the largest New Zealand owned bank can, and will, continue to lead the New Zealand financial services industry by being a better banking alternative that’s committed to being fair and easy for Kiwis, the businesses they own, and for future generations.”
Jurkovich noted that a customer with a variable rate on a $400,000 loan would be saving up to $100 a fortnight. He says a mix of fixed and variable rates has been a popular choice for a long time, and today’s move will allow customers access low rates through a unique lending reset.
“Of course, many customers choose a mix of variable and fixed loans, and as a result of today’s reset, they could enjoy competitive rates and flexibility in an unprecedented way,” Jurkovich said.
“The new variable rates will also be a good option for first home buyers who don’t have 20% equity.”
The changes to variable rates are available to existing customers from 29 June, and to new customers from 15 June.
