PHOTO: The rate drops will save over 35,000 customers $20 million. Photo credit: Getty.
Kiwibank has slashed floating interest rates by 1 percent for home and business borrowers.
Floating (‘variable’) and offset mortgage rates are set to drop from 4.40 percent to 3.40 percent. Its revolving home loan rate will drop from 4.45 to 3.45 percent.
For business borrowers, the floating rate for loans secured against a property will drop to 3.90 percent and for business floating loans, to 5.50 percent. The rate for business revolving credit loans will drop to 6.75 percent and for business overdrafts, to 7.50 percent.
Kiwibank chief executive Steve Jurkovich, said that as a result of the rate drops, over 35,000 customers will save $20 million. Pricing floating and fixed rates closer together will give borrowers more options.
“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,” he said.
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