Bank's previous rate changes were in early November
Kiwibank has announced new fixed home loan card rates following its fixed home loan changes in early November.
Beginning November 15, Kiwibank’s new special rate fixed for two years is now 4.15% p.a. (minimum 20% equity, also available for first home loan customers) – an increase from 3.99% p.a. in early November.
Meanwhile, its new standard rate p.a. for more than 80 loan-to-value ratio (LVR) has increased from 4.84% in early November to 5.00%.
Kiwibank also clarified that the interest rate for all bridging loans will be 1% above its variable interest rate.
Read more: Kiwibank announces fixed home loan change
In early November, Kiwibank followed in the footsteps of other banks in New Zealand by making changes to its fixed home loan card rates.
The changes included a 3.49% fixed home loan rate for one year, 4.34% for over 80 LVR for the same period, 4.49% for three years, 4.69% for four years, 5.54% for over 80 LVR for the same period, 4.85% for five years, and 5.70% for over 80 LVR for five years.
Yesterday’s announcement confirmed that only the rates for two years have changed.
Focusing on other banks in the country, BNZ became known as the first mainstream bank to formally adopt a bet-to-income ratio for home lending after it announced last month that customers cannot borrow more than six times their income when applying for a home loan through a broker.
A BNZ spokesman explained in a statement sent to Stuff that the bank’s move was in line with its obligation to abide by regulations and requirements.
Also announced last month, TSB Bank made the competition tougher for Australian-owned banks by promising to beat any national advertised fixed home loan rates from the “big four” – ANZ, ASB, BNZ, and Westpac.