New rates take effect in mid-August
In response to the Reserve Bank's recent decision, Kiwibank has announced a 0.25% reduction in its home loan and business variable lending rates, offering some financial relief to borrowers amid ongoing economic challenges.
Starting Aug. 19, the new rates will apply to new home loan lending, while existing borrowers will see the changes reflected from Sept. 2. The adjustments include reductions in the term loan variable rate and the offset variable rate, both decreasing from 8.50% to 8.25%, and a drop in the revolving loan rate from 8.55% to 8.30%.
“We’re pleased to respond promptly to today’s changes by the Reserve Bank, allowing us to pass on reduced interest rates to our customers. In the current high interest rate environment, we understand that any decrease in lending rates can lead to meaningful savings on loans and mortgages, enhancing affordability and financial flexibility for our customers," said Elliot Smith, chief customer office for business at Kiwibank.
In addition to the home loan changes, Kiwibank will also lower its variable business lending rates by 0.25%, with affected customers to be informed prior to the adjustment.
The bank has also revised its deposit rates, effective August 19. The 90-Day Notice Saver rate will decrease from 5.35% to 5.10%, and the 32-Day Notice Saver rate will fall from 4.80% to 4.55%.
The Standard Online Call and PIE Online Call base rates will drop from 4.50% to 4.25%, while the Business Online Call rate, which requires a minimum balance of $2,000, will see a reduction in its base rate from 4.50% to 4.25%.
