Bank lowers home loan and business lending rates following similar moves from Westpac NZ and BNZ
Kiwibank has become the latest major bank to lower its home loan and business lending rates in response to the Reserve Bank’s recent 50-basis-point OCR reduction.
The changes are aimed at easing financial pressures on homeowners and businesses while signaling a boost in confidence in the housing market.
Nicole Pervan (pictured above), general manager of home lending at Kiwibank, emphasised the bank’s swift response to the OCR cut.
“We are responding quickly to the Reserve Bank’s changes by lowering our interest rates to help our customers save on mortgages and business lending, making them more affordable,” Pervan said. “As interest rates decrease, we are seeing signs of increasing confidence and movement in the housing market.”
Key changes from Kiwibank
Kiwibank’s variable home loan rates will drop starting December 2 for new home and business lending and December 16 for existing lending.
In addition, the bank is reducing its mortgage test rate from 8% to 7.5% beginning December 2, offering borrowers greater flexibility.
The reductions extend to business lending, with variable rates for housing-backed and standard loans decreasing by 0.50%.
Relief for households and businesses
Kiwibank’s announcement follows earlier rate cut moves from BNZ and Westpac NZ, but its focus on reducing the mortgage test rate highlights an additional layer of support for borrowers.
The changes aim to make home lending more accessible and affordable, particularly as households prepare for the holiday season and businesses navigate ongoing economic challenges.
Pervan noted that the adjustments align with increasing optimism in the property market, further reinforced by easing inflationary pressures.
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